If you weren’t already aware, we’re getting ever closer to that time of year again. The Christmas lights are already up in most places, while online stores and services are already preparing for bumper sales. But which payment methods will Australians mostly be using over the festive period?
Digital Wallets and Payment Apps
Quickly becoming the preferred payment method for Australians, digital wallets are certainly gaining momentum for digital and online transactions, particularly among smartphone users. The key benefits include the high levels of security and encryption, plus the convenience of not having to remember credit card numbers, as all that information is stored safely.
By the conclusion of 2023, the overall transaction value of digital wallet usage is expected to surpass $170 billion AUD, and they have also overtaken debit and credit cards in the online payment marketplace. This has made Apple Pay and Google Pay two major players for mobile transactions, although PayPal is continuing to lead the way as the most popular digital wallet for Aussies
However, despite the popularity of PayPal as one of the leading digital wallet brands, if we check out banking methods for online casinos here, transactions at such gaming sites are now unavailable due to policy changes. Nevertheless, there are several alternatives available and for Australians, the most popular tend to be Skrill, Neteller, and ecoPays.
Credit and Debit Cards, Prepaid Cards
Despite all the alternatives available these days, credit and debit card usage for online transactions continues to be the most popular payment method in Australia. At least for now, given that according to these recent card statistics for 2023, there are almost 13.5 million credit cards and 40.5 million debit cards in circulation.
Data highlights that the average credit card purchase is $113 AUD, while the average debit card purchase is more than half that amount at $50.99 AUD. Still, usage of either seems to be fairly interchangeable, given the average Aussie uses one or the other of their cards at least 23 times per month. The national spend on credit card purchases each month has now surpassed $33 billion each month.
One popular alternative to credit and debit cards is prepaid cards. These are more easily accessible for many people, given they don’t require a bank account to be opened. Consumers load up the card with a cash limit of their choosing, and that balance can then be used for online purchases. Popular brands in Australia include Neosurf, PaySafeCard, and UpayCard.
Buy Now Pay Later
One of the fastest growing online payment methods in Australia is Buy Now Pay Later, often referred to by its BNPL acronym. Indeed, once this next busy Christmas period of spending is over, this report says usage will have risen by 18.2% for the year, while BNPL payments for the country will have surpassed $22 billion AUD.
The main advantage of BNPL is obviously the opportunity to make payments in installments, which is increasingly commonplace when Australians are budgeting for Christmas, when spending tends to peak and snowball for many people. In 2023, the three biggest BNPL brands reportedly have almost 9 million clients between them.
Right now in Australia, the top three BNPL brands are Afterpay, Zip, and Humm, although the diverse range of options and brands available Down Under is growing all the time, including those offered by major banks across the country. Intriguingly, the Aussie BNPL could be disrupted by PayPal, already one of the most preferred digital wallet brands, who now offer instalment payment options for online purchases.
