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Sydney, 14 July 2008 – MasterCard Worldwide today announced the results of a global survey on the payment habits and perceptions of consumers. The research shows Australians are leading the way when it comes to using less cash and are more willing to embrace new technologies, such as contactless payments, than many other countries.

The research reveals eight out of 10 Australian consumers polled indicated they use less cash now than they did five years ago with only a greater proportion of consumers in New Zealand (82%), and South Korea (87%) saying that they are using less cash.

According to the survey, 60% of Australians questioned carried US$50 or less in their wallet. Italian consumers carried the most cash, with over 47% saying they had more than US$50 in their wallet. Consumers in Singapore and China were the most likely to carry less than $50 in cash at a time.

The dislike of carrying large amounts of money is felt most strongly in Australia. Australians (88%) and New Zealanders (87%) said they were uncomfortable carrying large amounts of cash compared to Singapore, where only 58% said they minded carrying a fat wallet.

“It’s clear that Australians are saying goodbye to cash. With the Reserve Bank’s own analysis revealing cash is more expensive than cards as a percentage of the transaction size, consumers in Australia are increasingly using payment cards to make their purchases as they become aware of the benefits – cost, convenience, security features and the ability to track expenses,” said Leigh Clapham, executive vice president, Australasia, MasterCard Worldwide.

The research also revealed that Australian consumers are among the leading other nations in their acceptance and willingness to use new contactless payment technologies such as MasterCard^® PayPass™. The results show that 60% of Australian consumers said they were likely to use a contactless payment card.

“It’s really encouraging to see that Australian consumers are leading the way in their willingness to use new payment technologies such as contactless. Australians understand the benefits that such payment technologies bring in comparison to other forms of payment, and are willing to use new ways to pay instead of cash,”added Clapham.

Consumers in Australia were also asked about the factors influencing their choice of payment method when making purchases. Australian respondents indicated that the choice of payment method was largely determined by the amount of the purchase (67%). Other considerations which affected consumers’ decisions on payment methods were the amount of cash in one’s wallet (38%), the balance in one’s checking account (33%), the ability to earn rewards (24%), the type of retailer (13%), and the speed of the transaction.

Over 7,000 interviews were conducted as part of the survey with consumers in the United States, Canada, the United Kingdom, Italy, France, Germany, and seven Asia/Pacific markets including Australia, New Zealand, Singapore, Hong Kong, Malaysia, South Korea and China.

Among the 13 markets surveyed, South Korean consumers appeared to be the most accepting of contactless cards. They showed the greatest familiarity (55%) with contactless technology, and also expressed the greatest likelihood of using contactless cards (65%), compared with the 13-market average of 49%.

Globally, the convenience factor was perceived as the biggest benefit by consumers to using contactless payments (47%), followed by the additional security features contactless cards provide (39%), the extra seconds shaved off from the time it takes to make a purchase (38%), and the benefit of not having to carry cash when you have a contactless card (34%).

Respondents in Asia/Pacific expressed similar sentiments to the rest of the world, with the exception of South Korea, where the additional security features of contactless cards were an even more important benefit than convenience.

MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 18 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard^®, Maestro^® and Cirrus^®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to http://www.mastercard.com.

Melissa Devine, 02 9818 0950, mdevine@ppr.com.au
Michael Pooley, 02 9818 9310, mpooley@ppr.com.au