Report about MBA Research 2022

Running head: MBA RESEARCH REPORT
MBA Research Report
Student’s name:
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EXECUTIVE SUMMARY:
The following paper is a report on the nature and influence of electronic transactions and
credit based payment method on Australian household spending habit. First, a discussion to
explain the credit based transaction system has been attempted to frame. Further, the overall
impact of such transaction modes such as credit cards and Afterpay has been explained. The
main focus, however has been placed on the influence of these transaction modes have on
daily household expenditure and habit. A critical analysis has been conducted on the same
along with the role and consequences on the merchants’ part. Further, a discussion regarding
the waste problem occurring due to this reckless credit payment method has been done. The
discourse has been concluded with some suggestive measures to counter the negative impact
of the matter.

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Table of Contents
Introduction................................................................................................................................3
Cashless Transaction and Australian Economy.........................................................................3
Impact of pay-later methods on other non-cash transaction modes...........................................4
Impact of credit cards and Afterpay on Economy.....................................................................5
Impact on the household expenditure habit...........................................................................6
Impact on production and the merchants...............................................................................7
Impact of increased consumption on product waste..................................................................8
Measures to counter the negative impacts of credit-based payment system..............................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................11

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Introduction
Australia is regarded as a mixed-market economy. As of 2017, with a GDP of
AU$1.69 trillion, Australia has been emerged as the country with largest median wealth per
adult. It is one of the wealthiest nations in the Asia-pacific region. A global giant in the
sectors like financial and insurance services, technology and high valued manufactured
products, Australia has long shifted from its industrial economic nature. Mining and
agriculture are the prime export sectors, whereas service industry exploded in terms of
economic growth in the last two decades of economic expansion. With this trend in mind,
Australia can be regarded as one of the developed and wealthy nations in the international
perspective.
The general consumer behaviour in Australia indicates a steady growth in the retail
market. Study shows that Australian people have relatively high capacity of affording high-
range products and services. The general consumer behaviour too indicates a steady growth
in the sectors like supermarkets and retail market. However, the changing methods of
payment has impacted the country’s economy to a significant extent.
The usual methods of payment adopted by Australian consumers were cash or
debit/credit cards. However, with the emergence of advanced technology, several non-
traditional payment methods such as online transactions, i.e. EFTPOS and pay-later methods
like Afterpay, Zippay, Openpay, Oxipay etc. the Australian economy has changed its
dimension over the years.
The aim of this paper is to critically examine the impact of credit card and pay-later
methods on household expenditure trends and the economy as a whole.