Payment cards continue to dominate e-commerce payments in Australia, reveals GlobalData

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Payment cards continue to dominate e-commerce payments in Australia, reveals GlobalData. Source: Shutterstock.com

Payment cards are the preferred payment method for e-commerce purchases in Australia, collectively accounting for 50.6% share in 2023, finds the 2023 Financial Services Consumer Survey, conducted by GlobalData, a leading data and analytics company.

GlobalData’s E-Commerce Analytics reveal that the e-commerce market in Australia grew by 10.3% in 2023 to reach AUD74.9bn ($49.8bn), as an increasing number of consumers shift from offline to online purchases. The e-commerce market is estimated to grow by 9.3% to reach AUD81.9bn ($54.4 bn) in 2024.

Kartik Challa, Senior Banking and Payments Analyst at GlobalData, comments: “Australia’s e-commerce market is growing at a healthy pace. The rapid adoption of smartphones, growing internet penetration, the availability of secure online payment systems, and the increasing number of online shoppers all supported this growth.”

82% of households made online purchases in 2022

According to Australia Post, 9.4 million households in Australia made an online purchase in 2022, representing 82% of all households. Online sales accounted for 18.1% of total retail sales in Australia in 2022. Meanwhile, the presence of secure payment solutions, including Mastercard Identity Check, and faster checkout options such as Click to Pay and PayPal Express Checkout have encouraged consumers to shop online.

According to GlobalData’s 2023 Financial Services Consumer Survey, around 84% of Australian consumers reported having shopped online in the past six months, while only 6% of respondents cited that they never shopped online.

GlobalData’s survey also revealed that, among the various tools, used for e-commerce purchases, payment cards are the most preferred. They collectively accounted for a 50.6% share of e-commerce purchases in 2023, with credit and charge cards alone accounting for a 29.2% share. Card usage is driven by benefits such as reward points, cashback, discounts at partner merchants, and the availability of instalment payment facilities.

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Booming Cross-Border E-Commerce Activity in Asia Presents Opportunities for European Merchants VARIOUS Booming Cross-Border E-Commerce Activity in Asia Presents Opportunities for European Merchants by Fintechnews Switzerland September 12, 2023 International e-commerce spending by JCB cardholders based in Asia increased by 52% between 2021 and 2022, presenting a significant opportunity for merchants in Europe as shoppers across the region show increasing willingness to purchase goods online from foreign businesses, a new paper by the Japanese credit card company shows. The report, titled “Click into Place: Unpacking Card Abandonment”, provides insights on online spending from Asia, sharing the latest research and data on e-commerce trends to help businesses boost e-commerce sales and stand out from the crowd. 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High cart abandonment in Asia suggests that there is potential for more expansion in the region if merchants are able to solve customers’ friction points and improve experience, the report says. cross border e-commerce image via freepik Addressing cart abandonment Cart abandonment is the act of a shopper adding an item to an online shopping cart but leaving the website without completing the purchase. It represents a significant amount of lost revenue for merchants in the online space. According to JCB, there are several cause of cart abandonment, with the first common one being the payment journey. In Asia, complicated checkouts and unexpected payment processes are cited as a reason for abandoning carts, with 55% of online shoppers in the region identifying long login and sign-up forms as a key source of frustrated. To address this paint point and boost sales, merchants must enhance customer experience by streamlining their checkout process with a well-designed website. 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