Credit cards remained the leading online payment method among Australians in 2021, accounting for 33% of e-commerce transaction values. However, a new report released from financial technology leader FIS® is forecasting digital wallets to overtake credit/charge cards to become the leading e-commerce payment method in Australia by 2025.
Buy now, pay later (BNPL) is also proving very popular and its share of e-commerce transaction value will continue to increase, from 11% in 2021 to a projected 14% in 2025.
The 2022 Global Payments Report by Worldpay from FIS, now in its seventh year, examines current and future payments trends across 41 markets. The report found that Australia’s e-commerce will continue to demonstrate robust growth of 11% CAGR through 2025.
Australia also saw one of the largest relative expansions (22%) at point-of-sale (POS) in APAC in 2021, reflecting steady recovery from the impact of the COVID-19 pandemic.
The FIS report on e-commerce Payment Trends
The FIS report found:
- Australia’s e-commerce market is set to grow by more than half (51%) between 2021 and 2025 to $70.7 billion (USD) in transaction value.
- In 2021, the leading online payment method was credit cards which accounted 33% of transaction value, followed by digital wallets (26%), debit cards (15%) and BNPL (11%).
- The FIS report also found that digital wallets are projected to overtake credit/charge cards to become the leading e-commerce payment method by 2024.
- BNPL is the fastest growing online payment method and projected to account for 14% of e-commerce transaction value by 2025 – trailing only New Zealand in the Asia Pacific region where BNPL is expected to claim 17% of online transaction value.
The FIS on Point-Of-Sale (POS) Payment Trends
The FIS report found:
- POS transaction value rebounded strongly in 2021, with Australia seeing one of the largest relative expansions in the Asia Pacific region (APAC) at 22%.
- Cash is in steep decline, and Australia is expected to have the lowest cash share in APAC in 2025 with cash accounting only 2% of POS transaction value.
- Debit cards (41%) and credit cards (35%) were the leading POS payment methods in 2021 and are projected to retain these leading positions through 2025.
- As Australian consumers shift away from cash at POS, mobile wallets – the fastest growing offline payment method – are capturing consumer loyalty and are on track to account for 16% of in-store transaction value by 2025.
About The Global Payments Report
The Global Payments Report by Worldpay from FIS offers a snapshot of the payments landscape: globally, by region and in 41 select markets.
The report tracks consumer payments when shopping online and at the point of sale, identifies key payment trends including B2B and C2B real-time payments, and projects future scenarios for payment method shares as well as market size.
The report’s data was collected using a survey of 46,000 consumers, secondary research, and extensive validation by payments experts from each region; the complete research methodology is published as an appendix to the report.
Published continuously since 2015, the Global Payments Report by Worldpay from FIS is benchmark used by merchants, financial institutions, press and researchers globally.
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights.
We help clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS ranks #241 on the 2021 Fortune 500 and is a member of Standard & Poor’s 500® Index.
Visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).