The banking revolution: what payments will look like in 2018


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The year is set to get off to an exciting start with the commencement of real-time payments in February.

This will enable virtually instantaneous payments - clearing times will be a thing of the past.

Payments will also be possible using new forms of "PayID'' such as email addresses, phone numbers or other identifiers instead of account numbers and BSBs, with more detailed descriptions - currently the limit is 18 characters.

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This development will bring Australia into line with other countries where similar capabilities are already in place.

We expect to see further increases in uptake of mobile payment options such as Apple Pay, Android Pay and Samsung Pay.

We don't expect usage to explode - consumers remain very happy to use payWave and PayPass - but wider availability and improved functionality will encourage more consumers to try mobile payments.

It will also be interesting to see how credit card rewards play out.

2017 saw significant cutbacks and two banks announcing they were going to drop American Express companion cards. In 2018 we should expect to see the banks further revise the value of rewards on offer.

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Alex Boorman is research director of RFi Group.