The Australian payment card market is forecast to lift 8 percent in 2021, after a sluggish growth rate of 0.8 percent in 2020 – a year hindered by the Covid-19 pandemic and a reduction in consumer and commercial purchases.
After consistent growth over the last few years, the Australian payment market is set to increase again this year, up 8.3 percent, a huge lift compared to last year, while outpacing its 5.8 percent growth rate in 2019, before the pandemic hit.
In value terms, the card payments market in Australia is set to reach US$577.3 billion in 2021, thanks to a recovery in economic conditions and the nation’s vaccination program gathering pace.
Meanwhile, the value of card payments is forecast to register a compound annual growth rate (CAGR) of 6.6 percent between 2021 and 2025, to reach US$746.1 billion in 2025, according to GlobalData.
“Australia has a developed card payment market with a strong payment infrastructure and high consumer preference for electronic payments,” said Sowmya Kulkarni, Senior Payments Analyst at GlobalData.
“Australians are prolific users of payment cards, with high frequency of card payments at 185 times per card in 2020. While the card payments market was affected in the short-run due to the pandemic, it is expected to rebound and continue its growth trajectory from 2021,” continued Kulkarni.
The report added that debit cards are the most preferred card type for payments in Australia, accounting for 58.5 percent of the overall card payments value in 2021, while credit and charge cards account for the remaining 41.5 percent share.
Initiatives such as contactless card payment also continue to grow in popularity, with the Australian government issuing an increase in the limit per transaction for consumers to go contactless – up from US$100 to US$200 – in April 2020.
Furthermore, payments via mobile wallets with stored debit and credit cards are also gaining traction, in addition to the usage of buy now, pay later platforms including Afterpay, concluded the report.