AUSTRALIA | Alternative payment methods such as mobile and digital wallets and buy now pay later (BNPL) solutions have reshaped Australia’s e-commerce landscape, overtaking traditional cash and card payments.
GlobalData’s E-Commerce Analytics revealed that the Australian e-commerce market was expected to register a CAGR of 6.5 percent from AUD 77.2 billion in 2024 to AUD 105.8 billion in 2029, as consumers increasingly shift from offline to online purchases.
“E-commerce sales in Australia have experienced consistent growth in recent years. This growth can be attributed to the availability of secure online payment tools, an increasing number of online shoppers, and the rise of online merchants and payment options,” said Shivani Gupta, Senior Banking and Payments Analyst at GlobalData.
“Furthermore, the popularity of online shopping events like Black Friday, Cyber Monday, and Afterpay Day has further fuelled the expansion of e-commerce.”
According to Australia Post, 7.6 million households in Australia made online purchases from November to December 2024, representing a growth rate of 2.4 percent compared to the same period last year.
Additionally, the availability of secure payment solutions, such as Mastercard Identity Check, and appealing BNPL options like Afterpay have encouraged consumers to shop online.
GlobalData’s 2024 Financial Services Consumer Survey revealed that alternative payment solutions dominated the e-commerce market in Australia, with a combined market share of 53 percent in 2024.
“This is a trend that is prevalent in many Asian markets. PayPal is the most preferred payment option, followed by other brands such as Apple Pay. The rising popularity of BNPL solutions is also contributing to the overall ecommerce payments, with the most prominent BNPL brands being Afterpay, Zip, and Klarna.”
Payment cards were the second most preferred payment method, with debit, credit and charge, and prepaid cards collectively accounting for 38.7 percent share in 2024.
This could be attributed to the value-added benefits of payment cards, including interest-free instalment payments, reward programs, cashback, and discounts.
Cash accounted for a share of just over three percent of e-commerce payments, reflecting the strong use of electronic payment methods in the country.
“The uptrend in e-commerce sales is likely to continue over the next few years supported by evolving consumer preferences, improving payment infrastructure, and proliferation of alternative payment solutions.”
Australia’s e-commerce sales are anticipated to register a growth rate of eight percent to reach AUD 83.4 billion in 2025.
