AUSTRALIA CARDS AND PAYMENTS MARKET (2025 - 2030)

The Australia Cards and Payments Market was valued at USD 1.01 Trillion in 2025 and is projected to reach a market size of USD 2.73 Trillion by the end of 2030. Over the forecast period of 2026-2030, the market is projected to grow at a CAGR of 22%.

Australia’s payments landscape exhibits moderate concentration. ANZ’s acquisition of Suncorp Bank expands access to Queensland’s agribusiness payment channels, enhancing regional negotiating leverage with payment schemes.

Fintech-oriented processors, including Zeller, Square, and Stripe, focus on transparent fee structures and same-day settlement capabilities. Zeller’s modular technology stack enables merchants to integrate banking and expense card services, driving growth in average revenue per user without legacy system burdens. BNPL leaders Afterpay and Zip are transitioning toward omnichannel PayTo subscription offerings as ASIC oversight exerts pressure on margins.

Key Market Insights:

Most Australian businesses offer customers a range of payment methods. Survey data indicates that, out of 17 available options, small- to medium-sized enterprises typically provide approximately six payment methods on average, while larger businesses (with over 200 employees) offer around 7.5. These businesses are adapting to rapidly changing consumer preferences, which have shifted from cash—once accounting for nearly half of all transactions a decade ago—to card payments, and more recently, to digital wallets, whose usage has grown substantially over the past three years.

Market Drivers:

Rising Adoption of Contactless Cards Fuels Market Expansion.

Tap-and-go payments now represent over 95% of in-person card transactions, establishing contactless as the default method for low-value purchases. Average transaction amounts are decreasing as consumers increasingly move away from cash, even for purchases under AUD 10. In response, hardware providers have integrated near-field communication (NFC) capabilities into inventory and customer-relationship management systems, encouraging merchants to phase out traditional mag-stripe and PIN-pad terminals.

Smaller merchants, including market stalls and food trucks that previously viewed card terminals as cost-prohibitive, have adopted all-in-one readers or tap-to-phone applications, expanding overall acceptance. This modernization of infrastructure enables richer data capture per transaction, supporting loyalty programs and real-time promotional offers that reinforce digital payment behaviors. While card schemes benefit from increased transaction volumes, interchange fee compression is driving the pursuit of supplementary revenue streams through value-added services.

Implementation of the New Payments Platform (NPP) Stimulates Market Expansion.

The New Payments Platform (NPP) processed 1.2 billion transactions in 2024, with PayTo overlay services enabling merchants to debit consumer accounts instantly, bypassing traditional direct-debit delays. The Confirmation-of-Payee feature has reduced misdirected payments by 23% and cut fraud losses by 15%, bolstering consumer trust. Amazon Australia’s integration with NAB allows customers to authorize recurring debits directly through their banking apps, eliminating the need to store card credentials.

Looking ahead, the platform’s roadmap includes straight-through cross-border settlement with Singapore’s PayNow, which is expected to reduce correspondent banking costs and minimize daylight settlement delays. Innovation in overlays is also driving B2B adoption, as invoice-attached, data-rich payment requests facilitate automatic reconciliation within enterprise resource planning (ERP) systems.

Market Restraints and Challenges:

Increasing Fraud and Chargeback Expenses Constrain Market Expansion.

Card-not-present fraud reached AUD 868 million in fiscal 2024, accounting for 92% of total losses. The use of synthetic identities, often exploiting data breaches to circumvent two-factor authentication, has prompted issuers to invest in behavioral biometrics and device-fingerprinting technologies. Chargeback ratios have risen as friendly fraud increasingly blurs the distinction between genuine disputes and intentional abuse.

Smaller payment gateways, lacking advanced machine-learning models, struggle to meet mandated false-positive thresholds, leading many to adopt white-label fraud-screening solutions. Merchants incur additional secondary costs from dispute-resolution staff and prolonged settlement holds, diminishing the cash-flow advantages of faster payment rails. Meanwhile, scheme requirements such as Secure Customer Authentication introduce friction that, if poorly implemented, can result in higher rates of cart abandonment.

Market Opportunities:

Transition to a Cashless Economy Projected to Boost Market Demand.

The demand for payment cards is expected to rise as economies worldwide continue transitioning toward a cashless environment. This shift toward card-based transactions was initially driven by efforts to reduce reliance on cash and has been further accelerated by the rapid expansion of e-commerce, which has encouraged broader adoption of plastic money. Trends such as privatization, globalization, and industrialization have significantly transformed the banking sector, improving financial accessibility and operational efficiency. Strengthened banking infrastructure has enhanced consumer purchasing power, and these developments are projected to further stimulate demand for card-based payment solutions.

AUSTRALIA CARDS AND PAYMENTS MARKET

Market Segmentation:

Segmentation By Component:

• Software
• Hardware
• Services

Hardware Components in the card and payments market encompass point-of-sale (POS) terminals, ATMs, and other physical devices essential for processing card transactions. Demand for modern, contactless-enabled POS terminals has risen as merchants strive to meet consumer expectations for fast and secure payment experiences. Hardware manufacturers are increasingly incorporating advanced technologies such as NFC, QR code scanning, and biometric authentication to enhance both security and user convenience. Furthermore, the growing adoption of self-service kiosks across sectors including retail, hospitality, and transportation is further supporting growth in the hardware segment.

Software Solutions form the backbone of the card and payments ecosystem, enabling efficient processing, management, and monitoring of payment transactions. Payment gateway platforms, fraud detection systems, and transaction management software play a critical role in ensuring the reliability and security of digital payments. The widespread adoption of cloud-based payment solutions allows businesses to scale effectively, reduce infrastructure costs, and increase operational flexibility. Software providers are also utilizing artificial intelligence and machine learning to offer advanced analytics and real-time risk management, supporting the detection and prevention of fraudulent activity. Integration with enterprise resource planning (ERP) and customer relationship management (CRM) systems further enhances the functionality and value of payment software solutions.

By Card Type:

• Debit Cards
• Credit Cards
• Prepaid Cards
• Others

Hardware Components in the card and payments market encompass point-of-sale (POS) terminals, ATMs, and other physical devices essential for processing card transactions. Demand for modern, contactless-enabled POS terminals has risen as merchants strive to meet consumer expectations for fast and secure payment experiences. Hardware manufacturers are increasingly incorporating advanced technologies such as NFC, QR code scanning, and biometric authentication to enhance both security and user convenience. Furthermore, the growing adoption of self-service kiosks across sectors including retail, hospitality, and transportation is further supporting growth in the hardware segment.

Software Solutions form the backbone of the card and payments ecosystem, enabling efficient processing, management, and monitoring of payment transactions. Payment gateway platforms, fraud detection systems, and transaction management software play a critical role in ensuring the reliability and security of digital payments. The widespread adoption of cloud-based payment solutions allows businesses to scale effectively, reduce infrastructure costs, and increase operational flexibility. Software providers are also utilizing artificial intelligence and machine learning to offer advanced analytics and real-time risk management, supporting the detection and prevention of fraudulent activity. Integration with enterprise resource planning (ERP) and customer relationship management (CRM) systems further enhances the functionality and value of payment software solutions.

By Payment Method:

• EMV Chip
• Contactless Payments
• Mobile Payments
• Magnetic Stripe
• Others

EMV Chip Technology has become the industry standard for card payments, offering enhanced security through dynamic authentication and encryption. The widespread adoption of EMV-compliant cards and terminals has significantly reduced card-present fraud, particularly in regions with high penetration. Financial institutions and merchants continue to invest in EMV infrastructure to comply with regulatory requirements and protect against evolving security threats. Additionally, the integration of EMV technology with contactless and mobile payment solutions is providing consumers with a seamless and secure transaction experience.

Magnetic Stripe Payments, while still operational in certain regions, are gradually being replaced by more secure alternatives. Legacy systems and established consumer habits continue to support the use of magnetic stripe cards in specific markets and sectors. Market participants are working to balance compatibility with existing infrastructure while encouraging adoption of advanced payment technologies. The shift away from magnetic stripe technology is expected to accelerate as regulatory pressures and security concerns increase.

By End-User:

• BFSI
• Retail
• Hospitality
• Healthcare
• Transportation
• Government
• Others

Retail Sector acts as a significant growth driver in the payments market, with merchants prioritizing seamless and secure payment experiences across both physical and digital channels. The shift toward omnichannel retailing has created demand for flexible payment solutions that accommodate in-store, online, and mobile transactions. Retailers are also utilizing advanced analytics and loyalty programs to personalize customer interactions and encourage repeat purchases, further accelerating the adoption of innovative card and payment technologies.

BFSI Sector leads in payment innovation, leveraging advanced technologies to enhance transaction security, optimize operations, and improve customer experiences. Banks and financial institutions are making substantial investments in digital transformation, including the deployment of contactless cards, mobile banking platforms, and real-time payment systems. The emergence of open banking and embedded finance enables seamless integration between payment services and third-party applications, unlocking new revenue streams and business models. A continued emphasis on regulatory compliance, risk management, and customer trust drives the adoption of comprehensive card and payment solutions within the BFSI sector.

Market Segmentation: Regional Analysis:

New South Wales leads the region, driven by Sydney’s concentration of fintech headquarters, venture capital activity, and advanced consumer adoption trends. The state’s AUD 216 billion government banking contract requires participating banks to implement PayTo across all public-facing departments, compelling associated vendor ecosystems to adopt real-time APIs. Merchant demand for multi-acquirer redundancy is reinforced by global enterprises using Sydney as a regional hub, motivating providers to meet international uptime standards. Contactless payments now account for over 99% of card-present transactions, making cash nearly obsolete for discretionary spending. Biometric authentication trials at points-of-sale are underway, with preliminary results showing an 18% improvement in customer throughput.

Queensland exhibits the fastest growth, supported by a tourism rebound and the Digital Queensland initiative, which mandates electronic payment acceptance across public transport and park services. Brisbane’s emerging fintech ecosystem benefits from lower operating costs and access to university talent. Earned-wage providers target coastal hospitality sectors, achieving double-digit adoption among shift workers. Infrastructure upgrades ahead of the 2032 Olympics, including NFC ticketing and cash-free precincts, are expected to reinforce long-term consumer adoption of digital payments.

Victoria maintains steady growth through Melbourne’s robust retail and hospitality environment. The city’s tram network adopted mobile wallet ticketing in 2025, streamlining fare collection and reducing fare evasion. Regulatory frameworks emphasizing consumer redress and data privacy are strengthening trust in digital credentials. Local technology clusters are experimenting with receipt-linked loyalty tokens integrated into open banking wallets, supporting innovation in consumer engagement.

COVID-19 Impact Analysis:

The COVID-19 pandemic accelerated the adoption of contactless payment methods, as both consumers and merchants sought to minimize physical interactions at points of sale. In response, major card issuers and payment networks raised contactless transaction limits and upgraded acceptance infrastructure, further supporting the expansion of the payments market.

Latest Market News:

February 2025: The Commonwealth Bank of Australia (CBA) partnered with the New South Wales (NSW) Government to enhance banking services, increasing accessibility for individuals, businesses, and communities. This collaboration promotes the adoption of digital banking and payment solutions, strengthening Australia’s digital payments ecosystem.

December 2024: Australia and New Zealand Banking Group (ANZ) expanded its ANZ Express Payments service to facilitate inbound cross-border payments of up to AUD 500 in near real-time, available every day of the week. This enhancement improves the efficiency and speed of international transactions, supporting the development of Australia’s payments sector.

August 2024: BNY Mellon and Commonwealth Bank of Australia (CBA) launched a partnership for cross-border payments, enabling both businesses and individuals to receive international transfers within 60 seconds, regardless of their banking provider. This initiative enhances the speed and effectiveness of global transactions, contributing to innovation in Australia’s payments industry.

Latest Trends and Developments:

The introduction and growing adoption of virtual cards are anticipated to play a key role in driving growth within the cards and payments market. Alongside the increasing use of contactless payments, virtual cards and QR code–based payment methods are becoming more widely adopted. While virtual cards have been available for some time, their uptake has accelerated as consumers move toward cashless transactions. Leading providers now offer virtual cards that are stored on mobile devices and can be used for contactless payments both online and in-store. Each virtual card is assigned a unique card number, CVV, and expiration date, functioning as a digital equivalent of a physical card.

Key Players in the Market:

Commonwealth Bank of Australia

National Australia Bank Ltd

Australia and New Zealand Banking Group Ltd

PayPal Holdings Inc.

Westpac Banking Corporation

Stripe Inc.

Block Inc. (Square)

EFTPOS Payments Australia Ltd

BPAY Group Pty Ltd

Adyen N.V.