Australian and New Zealand cities among the top nine cities for digital payments

Visa has revealed the results of a new global study examining the economic impact of digital payments, with Sydney, Canberra and Auckland among the most “cashless” cities in the world.

Cashless Cities (‘the Study’) was commissioned by Visa and conducted by Roubini Thoughtlab. It quantifies the potential net benefits of a further move to digital payments for businesses, consumers and governments.

Of the 100 cities studied, Sydney, Canberra and Auckland are among only nine considered ‘Digital Leaders’ – a description given to the cities with populations that are nearly fully banked, have developed banking and digital payments systems, and are already among the world leaders in digital payments usage and infrastructure readiness. London, Toronto, and Stockholm are among the others on the list.

The Study comes at a time when contactless payments in Australia have reached a new high, now representing 92% of Visa face-to-face transactions, up from just over 80% in early 2017.

Visa Group Country Manager for Australia, New Zealand and South Pacific Stephen Karpin said: “Australia is leading the way in its move to digital payments, with Australian businesses, especially retailers, already benefiting from the operational efficiencies and additional customers that digital payments from international networks can bring”.

Visa Country Manager for New Zealand & South Pacific Marty Kerr said “The report’s release, during the busy summer tourist season, is also a reminder that businesses which are forward-thinking in their adoption of new payment technology instantly gain access to the global marketplace.”

The Study quantifies the potential net benefits of a further move to digital payments for businesses, consumers and governments.

Australia:

  • Businesses in Sydney could achieve up to AUD9.84 billion (USD7.86 billion) in direct net benefits per year, with Canberra potentially achieving more than AUD798 million (USD638 million), from factors including time savings in payments and increased sales revenues stemming from an extended customer base, both online and in-store.
  • Consumers across Sydney and Canberra could achieve nearly AUD851 million (USD680.5 million) per year, in estimated direct net benefits from factors including time savings from direct banking, retail and transit transactions.
  • Governments stand to benefit from various factors that include increased tax revenues, increased economic growth, and cost savings from efficiencies. Governments also stand to benefit indirectly through greater employment and wage growth.

New Zealand:

  • Businesses in Auckland could achieve over NZD1.5 billion (USD1.1 billion) in direct net benefits per year, from factors including time savings in payments and increased sales revenues stemming from an extended customer base, both online and in-store.
  • Consumers in Auckland could achieve over NZD150 million (USD110 million) per year, in estimated direct net benefits from factors including time savings from direct banking and retail and transit transactions.
  • Government stands to achieve over NZD270 million (USD198.5 million) in direct benefits per year, from various factors that include increased tax revenues, increased economic growth, and cost savings from efficiencies.