Alternative payment to account for 34.1% of Australia’s e-commerce payments

Payment cards will dominate e-commerce payments in 2023.

Alternative payment methods such as mobile and digital wallets will account for 34.1% of e-commerce payments in Australia in 2023 following payment cards, according to a report by GlobalData.

E-commerce payments in Australia is dominated by payment card as the sector comprises 50.6% of e-commerce payments, with credit and charge cards accounting for 29.2% and debit cards for 20.9%, said Shivani Gupta, senior analyst of Banking and Payments at GlobalData.

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“Consumers prefer credit and charge cards due to the value-added benefits they offer including interest free instalment payment options, reward programs, cashback, and discounts,” the report read.

Gupta added some of the popular brands in the growing alternative payments market in Australia were PayPal and Apple Pay. The growth is also driven by buy now, pay later.

“The growing popularity of alternative payment solutions, especially among younger generation, is expected to further accelerate the shift away from cards and these alternative payments are therefore all set to challenge the dominance of payment cards over the next five years,” Gupta said.