Payment cards are the most popular payment method for e-commerce purchases in Australia, accounting for a collective 50.6% share by 2023, according to the report from GlobalData, publisher of EPI.
GlobalData’s E-Commerce Analytics reveals that the Australian e-commerce market is expected to register 8.3% growth in 2024 to reach A$77.2 billion ($51.3 billion) as consumers increasingly shift from offline to online purchases. The market is expected to grow at a compound annual growth rate (CAGR) of 6.8% between 2024 and 2028 to reach A$100.5 billion ($66.8 billion) in 2028.
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, said: “The Australian e-commerce market has seen strong growth over the past five years. Rapid smartphone adoption, growing internet penetration, increasing number of online shoppers and the availability of secure online payment systems have all supported this growth. Online shopping events such as Black Friday and Cyber Monday have helped to boost e-commerce spending. The growth of the market has benefited alternative payment solutions such as Google Pay, Apple Pay and PayPal.”
To capitalize on this trend, retailers are introducing unique online shopping concepts such as livestream shopping. In January 2023, IKEA launched a livestream shopping experience, allowing users to purchase products directly from the website while streaming home furnishing videos. Links for specific products are available in the livestream window, meaning consumers don’t have to search for the products on the website, providing a more convenient experience for consumers.
GlobalData 2023 Financial Services Consumer Survey
According to GlobalData’s Financial Services Consumer Survey 2023, payment cards will account for 50.6% of the value of e-commerce payments in 2023. Credit and charge cards accounted for 29.2%, while debit cards accounted for 20.9%.
The use of cards is determined by benefits such as savings points, cashback, discounts at partner merchants and the option to pay in installments.
Alternative payment methods such as mobile and digital wallets are also widely used in the e-commerce sector in Australia. In 2023, they will account for 34.1% of payments on online shopping platforms. Australians are increasingly preferring alternative payment methods. Some of the popular brands include PayPal and Apple Pay.
Sharma concluded: “While debit cards still dominate, the growing popularity of alternative payment solutions, especially among younger generations, is expected to accelerate the shift from cards to alternative payments.”
“Payment cards dominate e-commerce payments in Australia, GlobalData reveals” was originally created and published by Electronic payments internationallya brand of GlobalData.
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