Australia Payments Market

Australia Payments Market Overview:

The Australia payments market size reached USD 806.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,341.7 Billion by 2033, exhibiting a growth rate (CAGR) of 5.3% during 2025-2033. The market is influenced by elements such as widespread digital uptake, a rise in mobile payment usage, the emergence of buy-now-pay-later options, innovations in secure transaction technology, the growing prominence of contactless payment methods, robust regulatory backing, and an increasing consumer desire for quick, efficient, and seamless payment solutions across various sectors.

Australia Payments Market Trends:

Increasing Adoption of Digital Payments

The usage of digital payments in Australia has been growing exponentially, for example, in October 2024, Australians made over 500 million mobile wallet transactions amounting to over USD 20 Billion. This is a clear indication of the preference of consumers towards the ease, speed, and security that digital payment solutions offer. The Australian Banking Association reported that during June 2023, 98.9% of consumer interactions were being conducted through digital channels like mobile banking apps and online websites. This change is not just among consumers, but businesses are also quickly adjusting to this trend. According to industry reports, in August 2023, 46% of Australian businesses have four or more payment instruments, and 45% want to enhance what they currently have. In addition, the growing usage of artificial intelligence (AI) and machine learning on online payments has improved security and fraud reduction measures, and this has placed more confidence among businesses and consumers to use such methods. Biometric identification methods, for example, fingerprints and face-scanning, have become common methods of mobile payment today, keeping fraud to a minimum. Besides this, the establishment of real-time payments through the New Payments Platform (NPP) has introduced instant money transfers between banks, further streamlining digital transactions.

Substantial Reduction in Cash Usage

Australia is also experiencing a strong reduction in cash use, with cash payments only accounting for 13% of consumer transactions in 2022, reducing significantly from 69% in 2007. This phenomenon is noticed in numerous sectors, particularly in transport and food retail, where cash payments have declined significantly as contactless card payments and digital payments have increased. The drop in cash usage has led to a notable decrease in ATM withdrawals. According to the Reserve Bank of Australia, ATM withdrawals reached around 29.3 million in April 2023, representing a decrease of 8.9% compared to April 2022. The total of ATMs also declined, as bank ATMs dropped from nearly 14,000 in 2017 to approximately 5,700 by mid-2023. Banks are reevaluating the feasibility of cash services because of the slump in demand. The Commonwealth Bank of Australia invested USD 410 Million in cash services over the last financial year and only earned USD 60 Million from such services, representing a net outlay of USD 350 Million. The financial cost has pushed banks to close down physical outlets and ATMs, and also affects consumer trends towards digital payments. As Australia moves to a completely digital payment landscape, advances in cybersecurity, infrastructure resilience, and financial inclusion will ensure a seamless transition. Greater fraud protection, real-time payment capabilities, and greater accessibility will enhance consumer confidence, driving additional take-up and positioning Australia as a global leader in digital payments.

Australia Payments Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on mode of payment and end use industry.

Mode of Payment Insights:

• Point of Sale
  • Card Payments
  • Digital Wallet
  • Cash
  • Others
• Online Sale
  • Card Payments
  • Digital Wallet
  • Others

The report has provided a detailed breakup and analysis of the market based on the mode of payment. This includes point of sale (card payments, digital wallet, cash, and others) and online sale (card payments, digital wallet, and others).

End Use Industry Insights:

• Retail
• Entertainment
• Healthcare
• Hospitality
• Others

A detailed breakup and analysis of the market based on the end use industry have also been provided in the report. This includes retail, entertainment, healthcare, hospitality, 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 Payments Market News:

• February 2025: The Commonwealth Bank of Australia (CBA) has joined forces with the New South Wales (NSW) Government to upgrade banking services, increasing accessibility for individuals, businesses, and communities. This partnership promotes the use of digital banking and payment options, enhancing Australia's digital payments sector.
• December 2024: Australia and New Zealand Banking Group (ANZ) increased its ANZ Express Payments service to enable inbound cross-border payments of up to AUD500, handled in nearly real-time, every day of the week. This action improves Australia’s payments sector by increasing the efficiency and rapidity of global transactions.
• August 2024: BNY and Commonwealth Bank of Australia (CBA) initiated a partnership for cross-border payments, allowing both businesses and individuals to obtain international payments in 60 seconds, irrespective of their banking institution. This partnership improves the pace and effectiveness of international transactions, aiding the increasing innovation in Australia’s payment sector.

Australia Payments Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia payments market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia payments market on the basis of mode of payment?
• What is the breakup of the Australia payments market on the basis of end use industry?
• What are the various stages in the value chain of the Australia payments market? 
• What are the key driving factors and challenges in the Australia payments market?
• What is the structure of the Australia payments market and who are the key players?
• What is the degree of competition in the Australia payments 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 payments market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia payments 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 payments 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.