Payment cards are the preferred payment method for e-commerce purchases in Australia, collectively accounting for 50.6% share in 2023, finds the 2023 Financial Services Consumer Survey, conducted by GlobalData, a leading data and analytics company.
GlobalData’s E-Commerce Analytics reveal that the e-commerce market in Australia grew by 10.3% in 2023 to reach AUD74.9 billion ($49.8 billion), as an increasing number of consumers shift from offline to online purchases. The e-commerce market is estimated to grow by 9.3% to reach AUD81.9 billion ($54.4 billion) in 2024.
Kartik Challa, Senior Banking and Payments Analyst at GlobalData, comments: “Australia’s e-commerce market is growing at a healthy pace. The rapid adoption of smartphones, growing internet penetration, the availability of secure online payment systems, and the increasing number of online shoppers all supported this growth.”
According to Australia Post, 9.4 million households in Australia made an online purchase in 2022, representing 82% of all households. Online sales accounted for 18.1% of total retail sales in Australia in 2022. Meanwhile, the presence of secure payment solutions, including Mastercard Identity Check, and faster checkout options such as Click to Pay and PayPal Express Checkout have encouraged consumers to shop online.
According to GlobalData’s 2023 Financial Services Consumer Survey, around 84% of Australian consumers reported having shopped online in the past six months, while only 6% of respondents cited that they never shopped online.
GlobalData’s survey also revealed that, among the various tools, used for e-commerce purchases, payment cards are the most preferred. They collectively accounted for a 50.6% share of e-commerce purchases in 2023, with credit and charge cards alone accounting for a 29.2% share. Card usage is driven by benefits such as reward points, cashback, discounts at partner merchants, and the availability of installment payment facilities.
While payment cards continue their dominance, alternative payment solutions are also used for online purchases and collectively account for 34.2% share, with PayPal being the most preferred payment option, followed by other brands such as Apple Pay and Afterpay. Increasing usage of BNPL solutions such as Afterpay is also contributing to overall e-commerce sales.
Challa concludes: “Australia’s e-commerce market is expected to continue evolving rapidly going forward and will reach AUD109.7 billion ($72.9 billion) by 2028, with an anticipated compound annual growth rate of 7.6% between 2024 and 2028. Evolving authentication measures that offer enhanced security and faster checkout options will further encourage online payments”.
