Popular alternative payment options when shopping

When was the last time you handed over cash to pay for dinner? According to recent Choosi research, two thirds of Aussies are currently using alternative payment technologies (67%) to make their purchases.

Right now, using a credit card is the dominant eCommerce payment method in Australia. But its days may finally be numbered as by 2021 bank transfers will replace it in popularity, and other alternative payment options will become second nature.

Popular alternative payment methods

When it comes to everyday purchases, Aussies are seeking ease and convenience. According to the Choosi Alternative Payments report, 61.9% of everyday purchases are facilitated by alternative payment methods, here are some of the most popular.


A digital wallet makes it easy to store funds and make money transfers online. It makes it fast and seamless when it comes to getting through an online checkout, because all your payment information is stored in the wallet, meaning it’s just a simple authorisation to make the transaction happen.

Having the ability to top up your e-Wallet instantly (via bank transfers and credit cards) is one reason they’re growing in popularity. PayPal is a common example of the e-Wallet’s growing use, with 244 million accounts active worldwide.

Alternative card payments

In addition to a credit card, there are alternative card payments being made every day for convenience and safety. These include payments via debit cards and charge cards that can be swiped in-store or used like a credit card online.

Alternative card payments can make spending safer. Unlike cash, if your cards are lost or stolen, your bank can block their use and replace them.

2 in 5 people say their spending has increased this year (graphic image)

Mobile payments

We’re attached to our mobile phones more than ever, so it’s no surprise they’ve evolved into helping us shop too.

You can use your mobile phone and mobile apps to make everyday transactions wherever you are, or you can use it for payments at point of service in store. It has become as easy as tapping your phone on a reader or pressing a button on screen to instantly pay a bill.

The Choosi Alternative Payments report found the convenience of modern technologies (such as tap-and-go) increased compared to a year ago. The proportion of everyday purchases made using alternative payment methods rose from 39.9% to 68.6% and the amount spent rose from 40.3% to 62.8%.

Bank account payments

Bank transfers and direct debits are secure and fast. They make it easy to ‘set and forget’ regular payments for both merchants and consumers, allowing you to send money directly from one bank account to another bank account. It’s estimated that by 2021 bank transfers will be the second most popular alternative payment method for eCommerce transactions.

The price of convenience

Have you experienced a blowout month when it comes to expenses? Maybe you spent a little too much on that night out with friends, or broke the budget for a one-of-a-kind pair of shoes you had to have.

You’re not alone. According to the Choosi Alternative Payment Report, over 7 in 10 think alternative payment methods make it easier to spend money they wouldn’t have otherwise. The vast majority believe alternative payment methods have made it easier to spend without thinking (91%), and easier to lose track of spending (86%).

A cashless society has made life convenient, but has it contributed to over spending? According to the same report, Australians who feel they over spend try to limit this by:

  • Carrying small amounts of cash (56%)
  • Leaving their cards at home (22%)
  • Using an app to track their spending (18%)


When it comes to making life easier, the growing trend of alternative payment methods has been embraced by Aussies.

According to the Choosi Alternative Payment Report, we’re keen to go cashless with nearly seven in ten Australians using alternative payment technology when making everyday purchases.

But there is a price to pay with these modern conveniences, and we may not even realise we’re paying it! According to the report, the vast majority of respondents believe alternative payment methods have made it easier to spend without thinking (91%), and easier to lose track of spending (86%).

Whatever your preferred mode of shopping and spending is, always do so with your personal budget in mind.

Budgeting is essential and so is keeping your valuables you purchase secure. Contents insurance is stand-alone cover for things like jewellery, electronics, books, appliances and whitegoods, furniture, carpets, curtains, any detachable fittings, and furnishings. Find out more about comparing a range of home and contents insurance with Choosi.