Australia is a world leader in adopting tap-and-go technology*
By 2019, there will be 17.93 million smartphone users in Australia.1 With an overall population of 24.13 million, this means Australia has a higher percentage of people with the power to make mobile payments, providing insight into how receptive Australians are to adopting this technology.
How do Australians like to shop?
Whether browsing or purchasing, shopping online with a smartphone is a common activity in Australia. Most shoppers spend up to $250 via mobile,1 and an online search for a product is over three times more likely to start in a browser (50%) than in an app (15%).2 But when it comes to making a payment, the majority (53%) prefer to pay through apps.1
App usage in the country is generally high, with the average Australian using 36 different apps per month, six more than the global average.3 Yet, on average, only two or three of these are retail apps capable of taking payments, so competition for mobile real estate is fierce. Currently, the top five retail apps are eBay AU, Gumtree AU, Amazon, OzBargain, and Amazon AU.4
Alternative payment methods are on the rise
Alternative payments methods (APM) are increasingly popular in Australia. These include “buy now, pay later” digital services that allow shoppers to pay for their purchases in instalments. These types of payments accounted for 7.7% of the total online goods spend in 2017.5 The services appeal particularly to 18-39 year-old shoppers, since this payment type can easily also act as a budgeting tool.
While “buy now, pay later” services are being used more often by Millennials, the most popular APM is PayPal, with an average 37% share of the checkout.1 Interestingly, 45-54 year-old shoppers are most likely to prefer PayPal (51%), whereas most 18-24 year-old shoppers prefer more traditional credit and debit cards,1 even though the number of cards being issued is largely stagnant. Additionally, men are 10% more likely than women to use a credit card, and women generally prefer debit over credit.1
What does this mean for your business?
Australian consumers lean toward convenience. Accepting convenient ways to pay like eWallets, PayPal, and Visa Checkout, as well as the most common card brands can help increase sales by simplifying the checkout experience. You may also consider adding AfterPay to serve consumers who prefer eInvoicing and PostPay.