Higher consumer spending drives Australia’s credit card market

The market is expected to hit $299.7b in 2025.

Australia's credit and charge card payments market continues to grow, driven by higher consumer spending, strong payment infrastructure, and a booming e-commerce sector, according to GlobalData.

The market is expected to hit $299.7b (AUD453.9b) by 2025, despite global economic challenges.

In 2024, the value of credit and charge card payments grew by 6.3%, supported by rising consumer spending. Value-added benefits like cashback, flexible repayments, and installment plans are fueling this growth.

“Public awareness of the advantages associated with credit card usage is widespread in Australia,” said Kartik Challa, senior banking and payments analyst at GlobalData. “Consumers frequently utilise these cards to capitalise on benefits, including cashback offers and rewards programs.”

He added that solid payment infrastructure and growing e-commerce are key factors driving this trend.

Credit and charge card usage is increasing, with cards averaging 225.5 transactions in 2024, expected to rise to 239.5 by 2029. Banks are offering flexible repayment options such as CommBank’s “SurePay” and NAB’s Now Pay Later program to support this growth.

Australia’s payment infrastructure is also improving, with 39,031 POS terminals per million inhabitants in 2024, surpassing countries like China (33,631) and Hong Kong (27,184).

E-commerce payments are another driver, with credit and charge cards making up 22.5% of online payments in 2024.

To help manage debt, Australian banks offer programs like debt consolidation and balance transfers. ANZ, for instance, allows customers to transfer balances from other cards to an ANZ card for easier payments.

Challa noted that Australia’s credit card market will continue to grow, driven by economic recovery and e-commerce. However, global trade issues and geopolitical risks may slow growth.

The market is expected to grow at a 4.4% CAGR, reaching $356b (AUD539.1b) by 2029.