Spending habits have changed quickly over the past few years. What used to take minutes, like writing down card numbers or counting bills, now happens with a tap or scan. Digital payments are becoming more common in both big cities and remote towns, across both developed and developing countries. Countries are adopting their own ways of making this easier, shaped by local needs and tech access.
The Rise of Digital Payments Worldwide
Digital payments have become a major part of daily life, replacing physical cash in both everyday purchases and larger transactions. According to the World Bank, more than 79% of adults globally now have access to a financial account, many of which are used for digital transactions.
In countries like China and India, QR code payments dominate street markets and retail shops, often through apps like Alipay or PhonePe. These platforms allow direct transfers without cards, reducing the need for bank branches or ATMs. Australia has seen a steady drop in ATM withdrawals over the past decade, while card and mobile payments have increased.
In parts of Africa, such as Kenya, mobile services like M-Pesa support over 50 million users, allowing people to send money, pay bills, and even receive salaries without a bank account. The move toward digital also allows governments and businesses to track transactions more clearly, cutting down on informal cash deals.
Australia: From Cards to Contactless
In Australia, paying with a card or phone has become the default in most situations. People tap at the supermarket, at restaurants, and even on public transport. One person might pay for lunch with a smartwatch, while another uses their banking app to split a dinner bill.
These systems are fast and don’t require handing over a card or typing in extra numbers. Sending money between accounts is just as easy, often settling in seconds. The shift to faster and safer transfers has improved how people handle personal and business payments.
PayID is one tool that helped push this further. It lets people send and receive money using only a phone number or email address, without needing full bank details. It also made money transfers abroad more straightforward. PayID has also been adopted by some online entertainment services looking for low-friction payment systems.
Australia’s growing network of PayID casinos highlights the demand for faster, more secure ways to move money online. For those who want faster payments and less hassle, this method has proven to be a useful option.
Nigeria: Leapfrogging with Mobile Money
Nigeria has made significant progress in digital payments, especially in areas where traditional banking services are limited. USSD banking remains one of the most widely used tools, allowing millions of people to access financial services through basic mobile phones without needing internet access.
According to the Nigeria Inter-Bank Settlement System, USSD transactions accounted for over 11.64 billion transactions in 2024 alone, covering everything from utility bills to fees. This has led to an approximately $419 million of earnings for the banks. That is why fintech companies like Paga and Opay have expanded access by offering mobile wallets that can be used at shops, kiosks, and market stalls.
Paga, for instance, has over 20 million users and supports payments, transfers, and savings through agents located across the country. These agents bridge the gap between digital systems and communities with no direct access to banks.
Though adoption has been gradual, it marks an important step toward formalizing digital transactions in the economy. With over 60% of the population still unbanked, mobile money continues to play a key role in everyday transactions across urban and rural Nigeria.
Impact on Consumer Behavior
The growth of fast digital payments has shifted how people manage and view their spending, from cash to microfinance. Transactions that once involved physical cash or card machines now happen in seconds, often without much thought. This speed can lead to increased impulse spending, especially when purchases require no physical exchange or delay.
Research from the Reserve Bank of Australia has shown that contactless payments and digital wallets are now used more frequently than cash, even for low-value items. At the same time, mobile banking apps give users more control. Real-time balance updates, spending summaries, and transaction alerts help people stay informed about where their money is going.
For example, someone might notice how often they spend on takeaway meals after reviewing weekly spending breakdowns. Others use category filters to monitor how much goes toward fuel or subscriptions. These tools make it easier to adjust habits and stick to budgets.
While spending has become easier, awareness of financial health has grown as well. More users are relying on budgeting features built into banking apps or third-party finance tools to set limits and track goals. The convenience of fast payments now comes with the need for sharper financial awareness.
The post How digital payments are changing the way we spend: From Nigeria to Australia appeared first on Vanguard News.
