Australian Consumer Payments January 2022 – 24 Months into Pandemic

Total annual retail consumer payments $1.74 trillion.

Australia 72.8 million cards spending $779 billion

National Payment Platform (NPP/Osko) 9.5 million users with $845 billion

Cash and ATMs $99 billion

BNPL 5.2 million accounts with $11.4 billion

Consumer cheques $4.7 billion

(All this data is ex RBA reports released March 7th)

NPP/OSKO Digital Payments – (RBA payments data)

9.8 million registered consumers

Annual spend $845 billion?– however growth rate has slowed every month since September 2020, the last 4 months volume is flat with January 14.5% down on December

Average transaction $98,287 also includes bank-to-bank transactions?

October??-?Osko volume $69.7 billion – only 5.2% increase on September

PayTo to be launched in 2022

Launched Feb 2018 NPP is the only true digital platform in Australia.

DEBIT CARDS – Consumers accessing their own cash (with expensive fees)

January spend $37 billion up 12.3 % vs 2021

Annual spend $448 billion annual spend up 12.8%

Debit cards issued 55.2 million (includes 13 million pre-paid) – 42 million debit up 1.63 million in 12 months

Average Spend 12 months $10,612 per card -- up 11.8 % vs prior year

CREDIT/CHARGE CARDS – important to split Consumer from Corp/Commercial cards

Australian credit card trends are like no other mature market - credit cards continue to decline

Consumer Cards credit/charge cards issued 15.8 million ?–?down 645,000 from year ago the slowest decline in 4 years

Australian consumers have cancelled 6.476 million cards since July 2016. (The last time Australia had 15.8 million credit/charge cards was February 2006)

Annual consumer spend $261 billion?- plus 8.3% is largest increase since 2019?– still reflects lack of international travel with annual overseas spend $6.9 billion down 58%.

Average Spend 12 months $16,510 per card

Average balance owing $17.3 billion or 11.8% below 12 months ago – over $10 billion has been lost in two years!

Average balance per card?- $1092 or US$765 which is very, very low by international standards, USA US$8076 with balance owing $6760, UK US$5674 with US$4350.

?Charge cards are having a resurgence (well Amex is as Diners has declined)?- market share avg 18.2% which is $57.7 billion annual spend and that's without overseas spend –?which is down 59%.

Charge Cards the Adults BNPL !!??Average spend $41,077 per card

ATMS

Total year ATM withdrawals $99.4 billion – down 5.8 %

January – $7.7 billion vs $8.3 billion last year decline of 7.7%

Overseas cash withdrawals by Australians down 69%.

PREPAID CARDS

13 million pre-paid cards on issue a record, increase of 26%

Prepaid annual spend $4.7 billion – increase of 14.9 % best result since 2019.

Average spend per card $361 per year increase of 7.2%.

Total stored value on cards - $864 million or $66 per card held

BNPL

BNPL 5.2 million active users, sales $11.4 billion vs total payments of $1.74 trillion = 65 basis points a 19 basis point decline since February 2021.

RBA quotes BNPL as 1.7% of card spend (this excludes Corp/Commercial cards)

Users spend $2192 per year or $183 per month.

Merchant sales per week of $3480

RBA Review of Payments November 2019 – stated BNPL sales for 2018/19 totalled $6 billion – page 29 of report.

BNPL companies do not disclose Australian only sales, merging Australia sales with New Zealand.

Online eCommerce

Online currently represents a very small market - Australia is rated 15th globally, well below its 12th place as an economy.

Debit card stats show card not present monthly increase of 22% of transactions YTD a decline of 16.5% from peak Covid-19 volume - while this is not a total for online purchases its indicative of decreased activity.

Independent Asia wide eCommerce Study March 2021 – online payment types with PayPal leading with 9 million accounts and 12 million users.

??????????????????????????????????????2021???????+/-?2020

PayPal???????????????????????????52.1%????????+3.3%

Credit Cards???????????????? 23.3%?????????-1.1%????????

Debit Cards???????????????????14.5%??????????-1.0%

BNPL??????????????????????????????5.2%???????????-0.5%

Other??????????????????????????????4.9%?????????????0%