Touch-less, virtual, health-conscious and eco-wise
The last 12 months has seen a noticeable growth in the adoption of consumer digital experiences that prior to the pandemic would have been considered nascent. In 2021, digital wallets are now poised to become the most popular in-store contactless payment method, virtual reality headsets and related experiences have grown in popularity, and Australians are now tracking and increasing number of health and fitness measures on their devices more than ever before.
Although discussion around increased digitisation has tended to centre on the dangers of excessive screen time and a society becoming disconnected from each other and the physical world, the pandemic has shown us that thoughtful, well designed, successfully implemented digital innovations can improve our quality of life. The pandemic has also reinforced that digital adoption is occurring across all demographics. Older generations once left behind as younger generations embraced new technologies are now responsible for the largest uptake in digital payment and fitness technologies during the pandemic.
The shift towards a largely digital society raises questions as to what’s next? Will we see a counter-cultural rejection of the digital world? Or will the confidence we have built in our digital technologies propel us to adopt it more and more in our daily lives? Are we moving towards a hybrid digital-physical reality, or ‘metaverse’?
This article explores some of the emerging digital experiences that have flourished during the pandemic and considers the balance between the benefits of integrating digital technologies into our lives and maintaining awareness of the ecological impacts of our digital consumerism.
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Touchless & virtual: touchless payments, digital wallets/BNPL and VR/AR
‘Tap and stay’
In 2021, the use of mobile digital wallets that allow users to store their debit or credit cards digitally on their phone has increased substantially in Australia. In 2019, 42% of respondents indicated they had not used a smartphone to make an in-store payment, in 2021 this number has reduced to only 15%.
With mobile digital wallets becoming more mainstream, the new frontier in digital payments is wearable technologies. While wearable device support has historically been deprioritised by many organisations due to low device penetration, this has turned around in recent years. Wearable adoption continues to grow, with smartwatches now accessible by 23% of consumers, up from 17% in 2020 and 12% in 20190. All major smartwatch manufacturers now include contactless tap and go payment functionality, so not only can consumers leave their wallets at home when shopping, they can also leave their phones (assuming their device is equipped with an LTE connection). Although still making up only a small portion of the payments landscape, the use of wearables as an in-store payment method has risen from 3% in 2019 to 10% this year.
Which, if any, mobile payment solutions have you used when doing the following? – Paying for a product/service in-store: Tap and pay solution on wearable devices
All adults 18-75 who have a smartphone
