GlobalData predicts Australian reliance on tourism industry to slow transactions growth
Friday, April 24, 2020
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GlobalData predicts that the total transaction value in Australia has been revised down to a compound annual growth rate (CAGR) of 2.4% between 2019-23 as consumer spending is forecast to decline due to the coronavirus (Covid-19) pandemic.
Australia report forecasts the value of cash transactions to decline by a CAGR of 4.3% between 2019-23f.
Ravi Sharma Senior Banking and Payments Analyst at GlobalData, said that the Australian economy has had a torrid year, with the Covid-19 pandemic happening as the country was recovering from widespread bushfires. China, the epicenter of the Covid-19 outbreak, and one of the worst affected countries, is Australia’s largest inbound market and represents nearly a third of its total international visitor spend (as of December 2019).
The steep decline in consumer spending will effect the payment industry and GlobalData’s 2019 Banking and Payments Survey found that travel, accommodation, food and drink accounted for nearly 43.3% of total credit card transaction value.
The worldwide trend will be increase in contactless payments as cash transactions fall. The use of NFC-enabled mobile wallet solutions like Apple Pay, Google Pay and Samsung Pay should also increase as consumers look for safer payment measures.
The report concluded that Australia is one of the most highly-developed contactless card markets in the world. GlobalData’s 2019 Banking and Payments survey found that 56.3% of Australian consumers have a contactless card and use it for payments.
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GlobalData predicts that the total transaction value in Australia has been revised down to a compound annual growth rate (CAGR) of 2.4% between 2019-23 as consumer spending is forecast to decline due to the coronavirus (Covid-19) pandemic.
