This month our research team looks at the payment market Australia. Our researchers support us and our clients by identifying trends early, as well as new business opportunities around the globe. Also as the last analysis about Francethe payment market Australia contains special environments for payment providers.
Australia is a 14 billion Dollar e-commerce market and thus delivers a great potential for payment providers to accelerate their cross-border growth. 94% of e-commerce purchases are made via computer, 4% via mobile phones and 2% via other devices such as tablets.
The kinds of purchases are interesting: 19% and so as usually the biggest part belongs to computers and other consumer electronics. Interesting: 18% goes to food, groceries and alcohol what is different to European markets. 12% belong to software and apps, only 12% to clothes, sporting equipment and toys, 7% to published media, 3% to cosmetics, fragrances and personal care items and 3% to jewellery and fashion accessories.
Australians like to shop online: Regarding the frequency of online purchases 52% of online shoppers bought 1-5 times. 25% of online shoppers purchased 6-10 times and 23% bought 11 times or more. These figures are still increasing compared to the timeline. Reflecting overseas purchases 19% of the Australian shoppers mostly purchased from overseas sites, 29 % purchased equally from Australian and overseas sites. Also this user behaviour increases significantly.
The other specification of the Australian market refers to the preferred payment methods by the customers. The common payment method in e-commerce in Australia is PayPal followed by credit cards. Online transfer does also have a strong usage share, but it is not used by consumers for e-commerce purchases, accordingly for basis payments for e.g. rent, energy and other personal payments. The remaining alternative online payment methods are particularly BPAY and Ezidebit with a market share of 1% all together.
PAY.ON supports payment providers in their expansion with its routing gateway PayPipe. The API provided allows clients to connect automatically – via only one single API – to all the systems currently operated by several hundred payment providers – from payment service providers, acquirers and scheme operators to risk management providers and other financial institutions. These include over 100 different payment methods considering also the Australian mainly used payment methods.
Other sources of the analysis: ecommercereport.com.au, e-commerce marketplace in Australia Report ACMA, polipayments