Consumers are ditching their wallets and paying by smartphone

THIS is the new type of technology that many Australian shoppers are embracing and using to pay at the checkout now that more banks are on board.

MORE shoppers are becoming wallet-free by ditching plastic and opting to pay at the checkout using their smartphone.

Multiple banks have adopted the technology that allows Android users to wave their phone at the checkout, leaving behind any need to carry cash.

Chris Burt-Allan, 31, often goes wallet-free and says he relies on his smartphone to pay for smaller purchases including coffees and lunch.

City worker Chris Burt-Allan, 31, regularly uses his smartphone to pay for goods.

“For me it’s a no-brainer, it’s just for convenience, I like to travel light,’’ he says.

“If I’m ducking out for convenience purchases especially coffee and snacks it’s just so easy to grab my phone, so instead of taking keys, wallet and phone it’s always just carrying my phone.”

National Australia Bank rolled out the technology this year which allows users to download the bank’s app and tap or wave their mobile device against a contactless payment terminal to make payments without the need to carry a debit or credit card.

Already the bank has had more than 250,000 debit and credit transactions in the past six months by customers using their handheld device.

NAB’s executive general manager of consumer lending, Angus Gilfillan, says the technology means consumers can pay “without fuss through their mobile phone.”

NAB Executive General Manager Consumer Lending, Angus Gilfillan says paying by phone is quick and easy for consumers.

“We’re seeing more and more everyday transactions made through the app, everything from buying the groceries to clothes, the petrol and stationery and best of all grabbing a quick takeaway coffee.”

Alan Shields, managing director of global business intelligence firm RFi, says while some consumers are embracing it, it could be a couple of years away before the uptake is significant.

RFi’s Alan Shields says there’s still a long way to go before more Australians are using their phone to pay.

“There are a few people using it but we’re not seeing huge numbers on a frequent basis,’’ he says.

Shields says many customers are limited by being able to use it if they don’t have a compatible smartphone device, their bank may not offer the capability or they do not have the right credit or debit card.

@sophieelsworth

Originally published as Consumers are ditching their wallets and paying by smartphone