Payments in Australia 2017: What Consumers Want
Australian payments market is one of the most developed in the world, with high penetration of payment cards. Consumers in Australia are very comfortable using debit and credit cards at the point of sale (POS) - indeed, the two card types are used almost interchangeably. The rising popularity of contactless payments has also contributed to the growth of payment card transaction volumes at the POS.
Consumers increasingly use faster and more secure payment options, resulting in mobile operators, traditional and online retailers, and other payment service providers introducing alternative payment solutions. Major Banks including ANZ and NAB are now offering their own payment solutions. The launch of global payment solutions such as Apple Pay, Android Pay, and Samsung Pay are anticipated to further accelerate the uptake of these solutions.
Reserve Bank of Australia’s (RBA’s) decision to cap interchange fees, allow merchants to levy surcharges to cover their acceptance costs, and introduce an ‘honor all cards’ rule to allow merchants to accept cards has led to a rise in payment card acceptance among merchants. The payment card transaction volume grew at review-period CAGR of 9.5%. This growth was supported by a consumer shift from cash to card-based transactions and the expansion of the retail and e-commerce markets.
Cash usage is gradually declining, with cards being used infrequently at ATMs, to the point that some businesses have stopped accepting cash altogether. But cash remains an important part of the market, and Australia is not yet a cashless society. Along with the rising prominence of payment cards, the uptake of new payment solutions is also rising in tandem, with the entry of international solutions such as Apple Pay, Android Pay, and Samsung Pay in the market. However, the peer-to-peer (P2P) sector is particularly underdeveloped relative to other payment solutions such as in-store and online.
Australian e-commerce market grew significantly, recording a compound annual growth rate (CAGR) of 14% between 2013 and 2017 to reach A$36.7bn (US$26.5bn), as consumers become increasingly comfortable shopping online. The country’s young and urban populations are highly media-literate, providing a platform for e-commerce companies to reach more potential customers. The availability of secure online payment gateways will also foster growth in the e-commerce market.
The report Payments in Australia 2017: What Consumers Want, examines the consumer payments market in Australia, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless.
Moreover, this report allows the following -
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