Consumers embrace digital payments

Consumers are embracing digital payment methods and recognise the potential for biometrics to offer security and convenience when making digital payments. 

However, overall comfort remains low with BNPL and crypto, with adoption hindered by a lack of understanding and pessimism. 

New data from Mastercard’s 2022 New Payments Index Report reveals that more than half of consumers (58%) say that using biometric technologies for identity is more secure than a PIN, password, or another form of identification. 

However, 74% of consumers are concerned about what entities have access to their biometric data.

Key Australian findings from the 2022 New Payments Index report include: 

• Digital payments have momentum
  • Consumers are making purchases in diverse ways with 9% of consumers having bought something using IoT/“smart” device, and 6% using voice assistant platforms
  • Currently, 17% of Aussies are comfortable using cryptocurrency to pay, and 21% have said they will likely use in the next year
  • 34% of consumers are comfortable sharing financial information with apps to have access to payment tools that help them manage their money
• The next frontier in payments
  • 51% of consumers agree they would use cryptocurrency more if they understood it better (+7% from 2021)
  • 26% of consumers have done at least one crypto related activity in the past year: 
  • 21% of consumers have bought crypto in the past year, 21% have held crypto as an investment, 19% have opened/used a crypto wallet
    • Of crypto users, 51% have increased their usage in the past year
    • 62% of consumers agree the government should regulate the cryptocurrency and stablecoin industry
• A balance between security and convenience
  • More than half (51%) believe it is easier to make payments using biometrics than a card or device
  • 63% believe using biometric technologies is easier than remembering PINs/passwords. However, 74% of consumers agree they are concerned about what entities have access to their biometric data
  • 52% of consumers believe that using biometric technologies for payments is more secure than two factor authentication
  • Biometric data used or planned to use to make payments include fingerprint (49%), facial recognition (45%), voice recognition (39%) and palm/hand (32%)
• Planning for payments (BNPL)
  • Consumers are open to using BNPL particularly for large/emergency purchases; however, only 42% are comfortable using BNPL today 
  • 60% of consumers agree they would feel safer using a BNPL solution backed by a major payment network than from other providers