Convenience is the common denominatorWhile cash used to be king and is still used in small-dollar transactions, the convenience and security of making payments via a digital method have led to the number of Australians increasing their use of digital payments. In terms of debit cards, Australians will be familiar with Eftpos, Visa, and Mastercard as the primary vendors. Debit cards are now the most common way to pay for transactions in-store or at other points of sale in Australia.
When considering payments for online transactions, card payments, which include debit and credit cards, are used by over half of consumers. Visa and Mastercard are the most widely used credit cards in the country, with an over 93 percent share of all credit card transactions.
Convenience has also led to e-wallets becoming increasingly popular to pay in stores, restaurants, and other points of sale with smartphones. Apple Pay and Google Pay are widely used, as well as major banks’ own ‘’tap and pay’’ systems.
Another growing segment that has changed how Australians are paying for products is the Buy Now Pay Later (BNPL) segment. Being able to spread the cost of a product over a set amount of time while paying no interest has driven growth for financial services such as Afterpay and Zip Pay.