Australia Consumer Credit Market

Australia Consumer Credit Market Overview:

The Australia consumer credit market size reached USD 336.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 478.6 Million by 2033, exhibiting a growth rate (CAGR) of 3.60% during 2025-2033. The market is experiencing growth, driven by increased consumer spending and confidence. The demand for both secured and unsecured credit is rising, influenced by low interest rates and flexible lending policies. However, economic uncertainties and financial pressures on certain sectors may affect credit stability.

Australia Consumer Credit Market Trends:

Strengthening BNPL Regulations for Consumer Protection

In recent years, the buy now pay later (BNPL) sector has rapidly grown, raising concerns about consumer debt levels and financial vulnerability. To address these concerns, Australia introduced the national consumer credit protection amendment (Low Cost Credit) Regulations in February 2025. This regulation reclassifies BNPL providers as low-cost credit contract (LCCC) providers, subjecting them to stricter oversight. The reforms require BNPL providers to conduct unsuitability assessments, ensuring that credit offerings are appropriate for consumers' financial situations. Additionally, fee caps have been implemented to limit excessive charges, and responsible lending obligations have been modified to enhance borrower protection. The introduction of these reforms in early 2025 marked a significant shift in the regulatory landscape. BNPL providers now face rigorous compliance requirements, including mandatory assessments of borrowers' repayment capacities. This change has led many providers to adjust their business models, focusing on responsible lending practices and transparent fee structures. Some providers have introduced more flexible repayment options and improved disclosure practices to meet regulatory standards.

These changes aim to curb risky lending practices, promote responsible borrowing, and safeguard consumers from debt traps. By enhancing consumer protections, the reforms seek to build trust in the BNPL sector and ensure that it remains a safe, sustainable option for credit.

Expanding Consumer Data Rights for Credit Transparency

Australia's consumer data right (CDR) has been pivotal in promoting transparency and competition in the financial sector. In March 2025, the government expanded the CDR to include non-bank lending institutions, effective from mid-2026. This reform is designed to empower consumers with greater access to their financial data, enabling them to compare credit products more effectively. By allowing consumers to share their financial information with different lenders securely, the CDR fosters increased competition and drive better product offerings in the credit market. The expansion of the CDR in 2025 is a key development aimed at transforming the credit market. By including non-bank lenders, the reform broadens the scope of data portability, allowing consumers to access and share their financial information across a wider range of credit providers. This encourages lenders to offer more competitive rates and tailored credit solutions, fostering a more dynamic and consumer-centric market. Financial technology companies (fintech’s) and non-bank lenders are leveraging this data to develop innovative credit products that cater to diverse consumer needs. By reducing compliance costs for lenders, the reform encourages innovation and competition in the credit market. Consumers can now make informed decisions, secure better credit deals, and benefit from tailored financial products. The expansion of the CDR fosters a more dynamic, transparent, and competitive consumer credit environment, ultimately enhancing financial inclusion and literacy.

Australia Consumer Credit Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on credit type, service type, issuer, and payment method.

Credit Type Insights:

• Revolving Credits
• Non-revolving Credits

The report has provided a detailed breakup and analysis of the market based on the credit type. This includes revolving credits and non-revolving credits.

Service Type Insights:

• Credit Services
• Software and IT Support Services

A detailed breakup and analysis of the market based on the service type have also been provided in the report. This includes credit services and software and IT support services.

Issuer Insights:

• Banks and Finance Companies
• Credit Unions
• Others

A detailed breakup and analysis of the market based on the issuer have also been provided in the report. This includes banks and finance companies, credit unions, and others.

Payment Method Insights:

• Direct Deposit
• Debit Card
• Others

A detailed breakup and analysis of the market based on the payment method have also been provided in the report. This includes direct deposit, debit card, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia 

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Consumer Credit Market News:

• February 2025: ASIC launched a consultation on new regulatory guidance for Buy Now Pay Later (BNPL) providers, effective June 2025. The reforms, under the Treasury Laws Amendment Act 2024, required credit licenses, modified lending obligations, and electronic disclosure, enhancing consumer protection in Australia’s consumer credit market.
• October 2024: Beforepay Group launched its first regulated personal loan under the National Consumer Credit Protection Act, offering loans of USD 2,001–USD 3,000 for up to 3 months. This expansion enhanced credit access, leveraging AI-driven risk models, and strengthened Australia’s consumer credit offerings.

Australia Consumer Credit Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia consumer credit market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia consumer credit market on the basis of credit type?
• What is the breakup of the Australia consumer credit market on the basis of service type?
• What is the breakup of the Australia consumer credit market on the basis of issuer?
• What is the breakup of the Australia consumer credit market on the basis of payment method?
• What are the various stages in the value chain of the Australia consumer credit market? 
• What are the key driving factors and challenges in the Australia consumer credit market?
• What is the structure of the Australia consumer credit market and who are the key players?
• What is the degree of competition in the Australia consumer credit market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia consumer credit market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia consumer credit market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia consumer credit industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.