The stats are in! eCommerce in Australia is strong and there's money to be spent.
With a GDP per capita of $88 thousand, Australians have significant purchasing power and disposable income, and eCommerce market is expected to surpass $24bn this year.
The uptake of digital payment solutions around the world, with countries in Europe and Asia moving swiftly towards a much more mobile centric and unified payment system, offers valuable insights into what’s next for Australia’s payment landscape. What can we expect to see next and what lessons can we learn from countries who have been there, doing that? Let’s take a look.
HOW DO AUSTRALIANS SPEND?
2.24 Million businesses are actively trading online
Cash & contactless:
45% carry cash for emergency transactions
19% of cash payments account for merchants not accepting alternative payment methods
Top 3 growth industries:
- Baby & Nursery
- Health & Beauty
Have doubled in the last 10 years
75% of Australians with cards use ‘Tap & Go’
Online shopping habits:
67% of Australians shop online
86% of online shoppers have completed a cross border purchase
Australia's payments landscape:
- Highly developed for online and mobile
- Ready to adapt to alternative payment types
- Accessible to international retailers
- Rapidly changing with significant payment innovation
Growth in online spending outperformed bricks-and-mortar retail by 6.9% last year and traditional retail is still a huge industry in Australia, bringing in $261 billion, but: more than 50% of purchases are now influenced by digital information.
- 39% of retailers use instore signage to convert customers to digital
- 86% of our transactions are on credit and debit card
- 72% of consumers use mobile devices for payments
Australia's top alternative payment methods:
This data lends itself to three main predictions for the Australian payments landscape.
The first is the decline of the credit card. The second is the rise of the eWallet and the third is that we’ll begin to see businesses offer their customers a much more integrated payments experience.