The Credit Card Issuance industry has contracted as the number of cards issued and balances accruing interest have fallen. Issuers have faced significant competition from other forms of payment like debit cards and BNPL services. The monthly value of debit card transactions has continued to surpass the monthly value of credit card transactions thanks to initiatives like the Reserve Bank of Australia's (RBA) least-cost routing initiative. BNPL services have also gained popularity with younger consumers who constitute a significant market for online sellers. That's why revenue is set to weaken by an annualised 5.3% over the five years through 2024-25, to $7.6 billion. To compete with sophisticated competition, credit card issuers have beefed up their reward and referral programs and integrated online payment, service and customer acquisition platforms into their operations. The Big Four banks dominate the industry and NAB's acquisition of Citigroup's Australian consumer banking business has expanded its collective market share. Economic conditions tied to inflationary pressures have ravaged consumer sentiment and appetites for spending through credit. Some customers have opted to pay down debt instead and have avoided taking on more. A sharp climb in interest rates over the past few years has compounded this dynamic, which is set to constrain industry performance in 2024-25, with revenue declining by an anticipated 0.9%. Credit card issuers' performance will improve over the coming years as economic conditions recover. Credit card issuance revenue is projected to expand at an annualised 2.0% through the end of 2029-30, to total $8.4 billion. The RBA is forecast to slash the cash rate once inflation falls within the central banks' target band, lifting credit card issuer profit margins as funding costs drop. Alternative payment methods, like BNPL services, debit transactions and other fintech solutions, are on track to sap away demand for credit cards. However, easing inflationary pressures and lower interest rates over the medium term are set to spur household consumption expenditure and credit card use. In response to the fierce competition, issuers will emphasise innovation and enhance their rewards and points systems to entice consumers.

The top five main card issuers in Australia together were responsible for ** percent of the market, with two issuers taking up nearly half of it. This is according to a publication from September 2024, that quoted data for Australia in 2022. Note that the figures display card payments as a whole, and do not distinguish between credit cards or debit cards. Visa ranks as Australia's biggest card scheme - with domestic scheme EFTPOS taking up roughly ** percent of the market.

The number of credit card payments in Australia increased by roughly *** million between 2021 and 2022. This led to the per capita count to increase to over *** in 2022. This figure is significantly higher than what is seen in most European countries. Annual credit card transactions per capita in the UK, for example, reached ** in 2020 - which was already higher than what was seen elsewhere in Europe. Cards are a relatively dominant payment method in Australia's in-store payments, as credit cards and debit cards together reached a market share of more than ** percent in 2021.

The Australia credit cards market size is expected to grow at a CAGR of 4.20% between 2025 and 2034.

Visa and Mastercard credit cards were responsible for **** percent of all Australian credit card payments in June 2023. The two companies are the major credit card providers in Australia, and have continued to maintain their market share over the past years.

Market Size statistics on the Credit Card Processing industry in Australia

The number of credit cards in use in Australia was forecast to continuously increase between 2024 and 2029 by in total *** million cards (+**** percent). After the twelfth consecutive increasing year, the number is estimated to reach ***** million cards and therefore a new peak in 2029. Shown is the estimated number of credit cards currently in use.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to *** countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).

Market Size statistics on the Credit Card Issuance industry in Australia

Visa and Mastercard credit cards were responsible for **** percent of the value of all Australian credit card payments in June 2023. The two companies are the major credit card providers in Australia,however, their market share has declined slightly over the past years.

The Australia Payments Market Report is Segmented by Mode of Payment (Point-Of-Sale [Debit Card Payments, Credit Card Payments, A2A Payments, Digital Wallet, Cash, and More], Online [Debit Card Payments, Credit Card Payment, A2A Payment, Digital Wallet, Cash-On-Delivery, and More]), End-User Industry (Retail, Entertainment, Healthcare, Hospitality, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

American Express and Diners Club credit cards were responsible for *** percent of all Australian credit card payments in June 2023. The two companies are competing with Visa and Mastercard; the major credit card providers in Australia.

The average value of a credit card transaction in Australia is predicted to decrease between 2023 and 2028 by over seven USD. This is according to one of several forecasts made by Statista covering the credit card market in Australia. The country is one of the most mature countries in the world when it comes to credit card penetration. This is especially reflected in the value of credit card payments, making up over ** percent of the country's GDP.

Visa's market share declined in 2023, while Mastercard's remained unchanged from the previous year. This according to research held over the years within Australia. Noticeable is the consistency of EFTPOS, a domestic POS payment system, whilst international brands show an increasing market share. Digital/mobile wallets are generally preferred for POS transactions within the country.

The Australian payments industry is experiencing robust growth, projected to reach a market size of $0.92 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 16.44% from 2025 to 2033. This signifies a significant expansion of the sector driven by several key factors. The increasing adoption of digital payment methods, fueled by rising smartphone penetration and e-commerce activity, is a major contributor. Furthermore, government initiatives promoting digital financial inclusion and the ongoing development of robust and secure payment infrastructure are accelerating market growth. The rise of contactless payments, buy-now-pay-later (BNPL) services, and embedded finance solutions are reshaping the competitive landscape and attracting new players. While challenges exist, such as the need for enhanced cybersecurity measures and addressing consumer concerns about data privacy, the overall outlook remains exceptionally positive. This expansion is evident in the diverse range of companies operating within the sector, including established players like Mastercard and Visa, alongside innovative fintech firms like Pin Payments, Secure Pay, and others. Competition is fierce, yet innovation continues to drive growth. The market is segmented by payment type (credit cards, debit cards, mobile payments, online payments, etc.), transaction value, and end-user industry (e-commerce, retail, hospitality, etc.). While precise regional breakdowns are unavailable, it's reasonable to expect a significant concentration of market activity in major urban centers like Sydney and Melbourne, mirroring overall economic activity and population distribution within Australia. The forecast period (2025-2033) promises considerable expansion, fueled by the sustained growth of e-commerce, the broader adoption of digital technologies, and the ongoing evolution of payment solutions in Australia. Key drivers for this market are: High Proliferation of E-commerce, including the rise of m-commerce and cross-border e-commerce supported by the increase in purchasing power, Enablement Programs by Key Retailers and Government encouraging digitization of the market; Growth of Real-time Payments in Germany. Potential restraints include: , Threat to Security of Fingerprint Data Within the System; Limitations of the Technology Leading to Breaches. Notable trends are: E-Commerce Segment is Anticipated to Witness Significant Growth.

Technology is up-ending how consumers manage their finances and pay for goods as buy now pay later (BNPL) services have emerged to challenge traditional credit cards and short-term loans. Convenient BNPL services have been integrated into the buying cycle, as consumers, particularly younger demographics, embrace payment instalments at the point-of-sale. Booming online shopping has fuelled merchant and consumer uptake of BNPL platforms. Revenue has surged by an anticipated 13.4% over the past five years, with a 3.7% jump in 2024-25, to reach $1.4 billion. Consumers can flip between BNPL platforms, which has pushed up competition as providers struggle for fluid market share. Banks and financial services firms have also jumped in, offering BNPL alongside their established suite of payment options. Their scale, absence of additional merchant and account fees and integrated service delivery have pressured traditional BNPL providers. Market saturation and the re-emergence of credit cards as strong substitutes have limited industry expansion. Rising interest rates and volatile consumer sentiment have also stretched the BNPL business model as funding costs climbed and operational conditions harshened. This led to the exit of unprofitable, smaller providers like Openpay and forced larger ones like Latitude to discontinue their BNPL platform, boosting profitability and market share concentration. Innovation has become a survival strategy for BNPL providers, as providers like Afterpay launched a subscription model, Afterpay Plus. Looking forwards, the prospect of tighter regulation will challenge BNPL providers. The proposed reform will require providers to comply with the National Consumer Credit Act 2009, meaning providers must obtain an Australian credit licence and adhere to responsible lending practices. This will lift compliance and operational expenses and restrict the accessibility to BNPL services, constraining revenue growth and promoting consolidation among providers. Despite these challenges, continuous technological innovation and the growing appeal of flexible instalment payments among younger generations are set to underpin industry expansion. Rate cuts in the coming years will also benefit providers as wholesale funding costs ease. This is why revenue is forecast to rise at an annualised 5.2% through the end of 2029-30, to reach $1.8 billion.

The Custody, Trustee and Stock Exchange Services has experienced dynamic shifts driven by globalisation, digital revolution and market volatility over the past few years. Although the number of stock market trades has climbed, investors and superannuation funds have gravitated towards international markets to diversify their portfolios over the past few years, slowing revenue growth for domestic stock exchanges and share registry services. Despite the trend, Guzman and Gomez's recent IPO, the largest on the ASX in three years - could signal a potential revival in domestic stock exchange interest. Competition within the industry has heightened over the past few years. The payment space has experienced fierce competition, but the growing digital payments and online shopping segments have propelled credit card usage. Despite the booming popularity of alternative payment methods like buy now pay later (BNPL), credit card providers have boosted their appeal through attractive loyalty and reward programs, spurring industry growth. The inherently volatile financial markets and consumer sentiment heavily influence services like stock exchanges share registries and credit card administration. Incidents like the pandemic have adversely impacted service providers' performance in the two years through 2020-21. However, despite market fluctuations, the industry's wide range of services has helped moderate revenue volatility. Therefore, revenue has risen at an annualised 0.7% to $13.0 billion over the five years through 2024-25, including a revenue uptick of 0.5% in the current year. The industry is on track to recover over the next few years. Consumer sentiment and business confidence are set to rise, encouraging more clients to seek out custody, trustee and stock exchange services. Anticipated growth of the All Ordinaries Index, the value of funds under management (FUM) and superannuation funds' assets under management (AUM) will fuel industry expansion. However, digitalisation in the financial services sector will introduce new entrants, creating a challenging environment for traditional service providers and placing downward pressure on profitability. Revenue is forecast to rise at an annualised 1.9% to $14.3 billion over the five years through 2029-39.

Increasing consumer demand for flexible payment solutions is being driven by the convenience and interest-free nature of Buy Now Pay Later (BNPL) services, which appeal to a broad demographic in Australia. The Australia Buy Now Pay Later Services Market is estimated to reach a valuation of USD 12.95 Billion in 2024, surpassing around USD 27.95 Billion valued in 2032.The rapid expansion of the Australia buy now pay later services market is primarily driven by the adoption of digital payment platforms, facilitated by advancements in financial technology and consumer preference for cashless transactions. It enables the market to grow at a CAGR of 11.60% from 2026 to 2032.

The global payments industry, valued at $2.85 trillion in 2025, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) of 10.88% from 2025 to 2033. This expansion is fueled by several key factors. The increasing adoption of digital technologies, particularly mobile wallets and online payment platforms, is driving a significant shift away from traditional cash transactions. E-commerce continues its rapid growth, further boosting demand for secure and convenient online payment solutions. Furthermore, the expansion of financial inclusion in emerging markets is creating new opportunities for payment providers. The industry is also witnessing innovation in areas like Buy Now, Pay Later (BNPL) services and the integration of payments into various applications, creating a seamless payment experience for consumers. Increased regulatory scrutiny and data security concerns represent key challenges. The payments industry is segmented by payment mode (Point of Sale – Card Pay, Digital Wallet, Cash, Other; Online Sale – Other Online) and end-user industry (Retail, Entertainment, Healthcare, Hospitality, Other). While Point of Sale transactions remain significant, the rapid growth of digital wallets and online payments is reshaping the market landscape. Retail and e-commerce sectors are the largest contributors to industry revenue, but significant growth potential exists in healthcare and hospitality, driven by increasing digitalization and adoption of contactless payments in these sectors. Key players like Mastercard, Visa, Alipay, PayPal, and Apple Pay are fiercely competing through strategic partnerships, technological advancements, and expansion into new markets. Regional variations exist, with North America and Europe currently dominating market share, but the Asia-Pacific region is projected to experience the most significant growth due to its large and rapidly expanding digital economy and rising mobile penetration. Recent developments include: October 2023: Square Capital LLC announced the debut of Tap to Pay on iPhone in Australia, where Square would make the technology available to its sellers. Tap to Pay on iPhone is available in the Square Point of Sale, Square for Retail, and Square Appointments iOS apps. It allows vendors of all sizes to accept contactless payments directly from their iPhones, with no additional hardware required or expense.July 2023: Grow Finance announced that the company partnered with Pismo to issue new Mastercard credit cards for small businesses in Australia. This new offer gives business owners better cash flow, management, and capital to help them improve their businesses.April 2023: Stripe announced the launch of unified commerce solutions for Australia. Through this, businesses of all sizes can accept in-person payments using the Stripe Terminal SDK and Tap to Pay on Android or Stripe Readers to unify online and in-person commerce with a single integration.. Key drivers for this market are: E-commerce Supported by the Rise of M-commerce is Expected to Drive the Market, Enablement Programs by Key Retailers and Government Encouraging Digitization of the Market; Growth of Real-time Payments in Various Countries. Potential restraints include: E-commerce Supported by the Rise of M-commerce is Expected to Drive the Market, Enablement Programs by Key Retailers and Government Encouraging Digitization of the Market; Growth of Real-time Payments in Various Countries. Notable trends are: The Payments have been Sharing wide Traction Owing to Rising Retail Sector.

The number of debit cards in use in Australia was forecast to continuously increase between 2024 and 2029 by in total *** million cards (+**** percent). According to this forecast, in 2029, the number will have increased for the eleventh consecutive year to ***** million cards. Shown is the estimated number of debit cards currently in use.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to *** countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).

The online payment solution market size is USD 15.97 billion in 2022 and will be USD 33.24 billion by 2030, with a CAGR of 9.6% during the forecast period.

Market Dynamics of the Online Payment Solutions Market

One of the prime factors that drive the growth in the online payment solutions market is the convenient payment option

Online payment volume has increased as a result of digitalization. Sales in the online payment gateway market are being driven by increasing consumer and merchant demand for simple, one-step payment processes. Additionally, since they can be used from anywhere in the world at any time, internet payments provide a hassle-free method. Additionally, small to large-scale merchants have chosen online payments because they make billing and providing hard copies of receipts easier. Moreover, because businesses and banks now offer e-receipt and e-notification, technical innovation and evolving software have made payment operations incredibly simple. The availability of OTPs and the regular transmission of transaction information by businesses has boosted the dependability of online payments.

Concern payment security:

The main obstacles to the adoption of the online payment system are security worries about data loss and privacy. In Europe, more than 50% of customers cited privacy as their top issue in 2019, while 75$ of respondents cited security as their top concern. According to the PwC mobile payment report. Similar to this reserve bank Australia claims that the most common kind of fraud in Australia is card not present transaction. This probably impedes market expansion.

Impact of the COVID-19 pandemic on the Online payment solutions Market:

The Covid-19 pandemic has resulted in a notable upswing in the online payment services market. The fast-paced digitalization of a variety of industries has made online transactions an increasingly popular means of fulfilling a wide range of needs, particularly in light of mobility constraints. This has extended to the procurement of essential items such as food, beverages, and household necessities. Due to the abovementioned factor, the covid-19 had a positive impact on the online payment solution market. Introduction of Online Payment Solutions

In simple terms, it is a financial transaction carried out digitally through the Internet. The procedure in these transactions is the transfer of funds from a customer's bank account debit card or credit card to a seller's bank account. Using this online e-payment to pay for seller products or services is convenient. Online payment apps enable transactions between buyers and sellers via the Internet. The transaction on the purchaser’s side involves the purchase of goods and services as well as the delivery of goods and services as well as the delivery of goods or services from the seller. These simple online payment solutions require multiple procedures to transfer the money from the customer and the goods from the vendors. To effectively execute their transaction, both parties will use a few online payment apps. The online payment market is growing as increasing digitalization, the growing need for mobile payment transactions, and increasing internet connectivity are becoming more widely available.