Payment cards drive over 50% of Australia's e-commerce transactions

The country’s e-commerce market is anticipated to hit $72.9b by 2028.

Payment cards are the go-to choice for online shopping in Australia, accounting for over half of all transactions in 2023.

According to a GlobalData report, 84% of Australians surveyed reported making online purchases in the past six months, whilst only 6% stated they had not shopped online at all.

Payment cards is the most preferred method, capturing 50.6% of transactions in 2023. Credit and charge cards alone accounted for 29.2% of the market. Meanwhile, alternative payment solutions, including PayPal and BNPL services like Afterpay, collectively held a 34.2% share.

The e-commerce market surged by 10.3% in 2023, hitting $49.8b, driven by a shift towards online shopping. Projections indicate further growth, reaching $54.4b in 2024.

“The rapid adoption of smartphones, growing internet penetration, the availability of secure online payment systems, and the increasing number of online shoppers all supported this growth,” said Kartik Challa, senior analyst at GlobalData.

In 2022, 9.4 million Australian households made online purchases, with online sales accounting for 18.1% of total retail sales.

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The presence of secure payment solutions, including innovations like Mastercard Identity Check and expedited checkout options such as Click to Pay and PayPal Express Checkout, further bolstered consumer confidence in online transactions.

Challa also predicts that Australia's e-commerce market will hit $72.9b by 2028, with a 7.6% compound annual growth rate from 2024 to 2028. 

Additionally, improved security measures and faster checkout options are expected to drive further growth in online payments.