Payments Industry in Australia Size & Share Analysis – Growth Trends & Forecasts (2025 – 2030)

Australia Payments Market Trends

Rising Digital Payment Adoption and Mobile Wallet Integration

The Australian payments landscape is experiencing a fundamental shift driven by increasing consumer comfort with digital payment methods and digital wallet solutions. According to Marqeta’s 2022 State of Consumer Money Movement study, an overwhelming 69% of Australians feel secure enough using digital wallets to leave their physical wallets at home, significantly outpacing adoption rates in other developed markets like the United States. This confidence is reinforced by the fact that 90% of Australian consumers rate mobile wallets as highly convenient for their daily transactions, while 86% report being able to make mobile payments wherever they wish, indicating the widespread acceptance and infrastructure support for digital payments across the country.

The integration of advanced payment technologies and biometric payment authentication methods has further accelerated the adoption of digital payment solutions. Banks have actively promoted mobile payments that utilize device biometrics for authentication, eliminating the need for PIN entry at payment terminals and enhancing both security and convenience. The expansion of payment options through digital wallets has created a more diverse and flexible payment ecosystem, with consumers increasingly storing their card details in digital wallets on mobile devices for contactless payments, reflecting a broader shift toward more sophisticated and user-friendly payment methods.

Regulatory Support and Infrastructure Modernization

The Australian payments market is significantly propelled by progressive regulatory frameworks and continuous infrastructure modernization efforts. The Federal Government’s financial market infrastructure (FMI) reforms, supported by the Reserve Bank of Australia’s Payment Systems Board, have established a robust foundation for payment innovation and security. These regulatory initiatives have positioned Australia as a leading cross-border payment hub in real-time, facilitating more efficient and accessible international transactions while maintaining high payment security standards and consumer protection measures.

The implementation of open banking initiatives has created new opportunities for payment service providers and fostered innovation in the financial technology sector. The regulatory environment has encouraged the development of new payment networks and services, most notably the introduction of the New Payments Platform (NPP), which enables real-time, information-rich, account-to-account bank transfers using PayIDs. This infrastructure modernization has been complemented by the industry’s move toward scheme tokenization, least cost routing, and enhanced security measures like Strong Customer Authentication (SCA), creating a more secure and efficient payment ecosystem that benefits both consumers and businesses.

Evolution of Consumer Payment Preferences

The transformation of consumer payment preferences has emerged as a significant driver in the Australian payments market, characterized by the rapid adoption of diverse payment methods and channels. The rise of Buy Now Pay Later (BNPL) services has been particularly noteworthy, with over half of Australians maintaining at least one BNPL account, forcing retailers to adapt their payment offerings to meet this growing demand. This shift in consumer behavior has led to the integration of multiple payment options at checkout points, including traditional credit cards, digital wallets, and installment payment solutions, creating a more inclusive and flexible payment environment.

The growing preference for omnichannel commerce has further reshaped the payment landscape, with consumers expecting seamless payment experiences across multiple channels—from online payments on e-commerce websites to social media platforms and physical stores. The emergence of shoppable posts across social media channels and the integration of payment capabilities into various customer touchpoints has created new opportunities for merchants to engage with customers. This evolution is particularly evident in the rising popularity of Click & Collect services, which has prompted retailers to develop more sophisticated payment software and fulfillment systems that bridge the gap between online and offline commerce while meeting consumer expectations for convenience and flexibility.

Segment Analysis: By Payment Mode

Cards Segment in Australia Payments Market

The cards segment dominates the Australian payments market, commanding approximately 64% market share in 2024. This segment, comprising debit cards, credit cards, and prepaid cards, has maintained its leadership position due to increasing consumer preference for digital and contactless card payments. The widespread acceptance of card payments across retail locations, coupled with the robust infrastructure of payment terminals and the growing e-commerce sector, has solidified its market position. Debit cards particularly stand out as the preferred payment method among Australian consumers, while credit cards continue to serve as a crucial payment tool for both personal and business transactions.

Cards Segment in Australia Payments Market

The cards segment is also experiencing the fastest growth in the Australian payments market, with an expected growth rate of approximately 7% during 2024-2029. This growth is primarily driven by the increasing adoption of contactless payments, the expansion of e-commerce platforms, and the integration of card payments with mobile wallets. The segment’s growth is further supported by technological innovations such as tokenization and enhanced security features, making card payments more secure and convenient for consumers. Financial institutions and payment service providers are continuously introducing new card products and features to meet evolving consumer needs and maintain this growth momentum. The role of merchant services and payment acquisition strategies is pivotal in this expansion.

Remaining Segments in Payment Mode Market

The remaining segments in the Australian payments market include cash-based transactions through ATMs and EFTPOS, as well as other payment modes such as internet banking, BPAY, direct debits, and emerging payment solutions. While cash transactions continue to decline, EFTPOS remains an important part of the payment infrastructure, particularly for point of sale payments. The other payment modes segment has gained significance with the rise of digital banking solutions and innovative payment technologies. These segments collectively provide consumers and businesses with diverse payment options, ensuring flexibility and accessibility in the payment ecosystem. The development of payment hardware is crucial in supporting these diverse POS payments.