MasterCard predicts that the Australian retail market sales is likely to increase in 2016, but declining growth in wages and an ineffective market is restricting the sales growth.
In addition, it also speculated that the decline in the Chinese market growth is also affecting Australia’s retail sales. MasterCard made such revelations that relied upon the first monthly analysis of millions of car payments made via different card terminals. The payment giant started tracking the retail market sales by recording the payments made through various terminals in 2015 and has confirmed that the data obtained via such mode is quite accurate as compared to that made available by the Bureau of Statistics, which depends completely on the survey.
MasterCard’s New York-based market insights Senior Vice President Sarah Quinlan said that year-on-year retail sales in Australia has risen with 3.2 percent value in January as compared to that in 2015, which recorded a running at around six percent. She added that the devaluation of the Australian dollar has resulted in diminishing real wages.
Investment from Chinese tourists and investors has also been slowing, deteriorating the retail sales and economy of the country. “You could have absolutely predicted the real estate outcome,” she said as quoted by the Sydney Morning Herald. “There’s two things I watch in spending, I watch consumer confidence and wage growth.” However, in the US, maybe the wage growth has been lower but consumer confidence has been higher than Aussies.
According to Time, MasterCard has recently announced launching ‘selfie’ payments for the card holders. Passwords are quite hard to handle, hence it aims at making the process easier for customers. In case any customer doesn’t like to take a selfie as identification, MasterCard will allow him/her to scan his/her finger to process transactions. To use the facility, however, the users will need to download an app. This new mode of identification will start implementing it in the US and the UK in the coming months. To make sure, the selfie is taken at the time of transaction and the users will be required to blink while taking their picture.