Convenience is the common denominator
In terms of card payments, Australians will be familiar with Visa and Mastercard as the primary vendors, which together made up over 90 percent of credit card transactions in Australia in recent years. It is no surprise that debit cards are not only the most common way to pay, given that credit and debit card payments are also the most widely accepted digital payment options by businesses in the country. However, consumers have expressed hesitancy to digital payments, particularly when there are security concerns, or the payment process is not straightforward.
Convenience has also led to e-wallets becoming increasingly popular to pay in stores, restaurants, and other points of sale with smartphones. Popular finance apps like Apple Pay and Google Pay are widely used, as well as major banks’ own ‘’tap and pay’’ systems. Alongside digital wallets, the Buy Now Pay Later (BNPL) segment is another key player changing how Australians make purchases. The ability 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.
Digital payment outlook
According to Statista’s Digital Market Outlook, the digital payment market in Australia is set to continue its growth, driven by both the digital commerce and mobile point of sale segments. While Australians are not short of options when it comes to digital payment methods, some of the more traditional methods, such as debit card payments, will likely remain the dominant form of payment in the short term. Yet how the market evolves into the future is likely to be dictated by younger generations being more open to using alternative payment methods such as BNPL and e-wallets.