Australia Mobile Payment Market Size & Share Analysis - Industry Research Report

Australia Mobile Payment Market Analysis

The Australian mobile payments market is expected to grow at a CAGR of 12.5% over the forecast period (2022 - 2027). The stores and services in Australia are rapidly adopting mobile payment applications, such as PayPal, Samsung Pay, and Apple Pay to accept and transfer payments. With increasing internet adoption and rapid growth in online retailing, this trend is expected to continue over the forecast period.

The payment processing environment in Australia has changed dramatically in recent years. Because of the rising need for contactless payments, the usage of digital payment methods for direct payments has fueled the adoption of mobile payments.
The increased use of smartphones in the country has enabled the development and use of mobile applications for various purposes. With the advancement of payment applications and technologies such as mobile payments, customers have an easy and seamless method to pay for online and in-store purchases, bill payments, money transfers, and many other things.
Furthermore, mobile payments provide a simple and safe method of making transactions. Through tokenization, individuals can use mobile wallets to store credit and debit card information on their devices. This changes card numbers, rendering the data useless to hackers. According to a survey conducted by the Reserve Bank In 2021, the value of credit card payments made in Australia amounted to around AUD 310.5 billion. The value of debit card payments amounted to AUD 417.9 billion in the same year.
However, data privacy remains a major threat to mobile phone applications that provide mobile wallets. Companies are continuously working to introduce simpler and safer methods of authenticating their clients' identities, increasing their policies' safety and dependability.
To prevent the spread of the Covid-19 pandemic, the need for contactless payments in retail stores such as grocery stores and restaurants has increased. Because there is no touch involved in the payment process, contactless payment solutions provided by mobile wallets are a secure alternative to dealing with cash and traditional credit cards.

Australia Mobile Payment Market Trends

This section covers the major market trends shaping the Australia Mobile Payment Market according to our research experts:

Integration with E-commerce Dominating the Growth of the Market

With a rising number of smartphones and high-speed cellular networks in Australia, the e-commerce business is expanding. Mobile transactions are predicted to develop significantly as the E-commerce industry grows, delivering a huge boost to the mobile payments market.
The penetration of mobile E-commerce in Australia has paved the way for the adoption of mobile wallets. According to the Australian Bureau of Statistics, in September 2021, the share of online sales in total retailing in Australia was roughly 15.3%, the highest proportion of online sales during the Feb 2020-Sep 2021. Food retailing's share of online sales declined from 7.4 % in 2020 to 7.2 % in 2021; however, online food sales were still larger than at the end of 2020(4.5%).
According to a new survey by Marqeta, Australian consumers are at the vanguard of mobile wallet use and acceptance of digital banking tools, leaving cash and physical payment experiences in more significant numbers than consumers in the United States or the United Kingdom. The 2022 State of Consumer Money Movement study by Marqeta surveyed 4,076 people across three continents, including over 1,000 in Australia, to find out how people in the United States, the United Kingdom, and Australia want to pay, bank, and shop.
Furthermore, according to the survey, 69% of Australians said they felt secure enough using a mobile wallet to leave their physical wallet at home, 23% more than the number of Americans who said the same. Mobile wallets received higher grades for convenience (90 %) than other survey respondents, and more Australians indicated they could make mobile payments anywhere they wished (86% ).
According to a survey conducted by Paypal, in 2021, around 81% of consumers who shop online in Australia trust PayPal to keep their payment secure. Among the respondents, around 71% trust Visa while around 69% trust MasterCard.
Several companies have witnessed strong growth owing to the proliferation of E-commerce in the country. For instance, Afterpay is an Australian-based company. In the financial year 2021, Afterpay had approximately 3.6 million active customers in Australia and New Zealand. The company offers a payment service that splits online purchases into four installments.

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Significant Growth in Mobile Payments is Expected Due to Technological Advancement

Mobile payment technology has evolved over time in Australia. Users were initially apprehensive about embracing Mobile NFC technology for contactless payments. Furthermore, technological improvements in credit card contactless technology have slowed the adoption of mobile payments.
However, with the introduction of Covid-19, the adoption of mobile payments has accelerated. With many users staying at home owing to the country's various lockdowns, the use of mobile payments in retail and e-commerce has grown.
With such a growth in mobile payment use, service providers actively invest in innovative technologies to protect and improve mobile payment performance. AI and ML, biometric authentication, and other technologies are being incorporated into mobile payment systems to improve payment security.
Because mobile payments create huge volumes of data daily, security is a critical component of mobile payment technology. The integration of AI and ML into mobile payment technologies for fraud detection has recently risen. Banks are continually examining data generated by Machine Learning to detect fraudulent actions.
Furthermore, many financial service providers have incorporated biometric authorization technologies, such as fingerprint, iris, retina, vein, and other forms of scanning, in recent years. Furthermore, as more clients migrate to mobile payments, financial institutions are under pressure to provide safe authentication methods, resulting in developments in biometric technology for authorization.

Australia Mobile Payment Industry Overview

The Australia mobile payments market is moderately fragmented, portraying intense competition among the companies offering services. Several communication companies are offering integration with their existing apps to make payments using smartphones. Telecom operators are also looking forward to entering the space with their unique offerings.

June 2022 - Westpac enables small businesses to accept Tap on Phone payments. Airpay TAP software is available in Australia and works with Android 9.0 and above. Small companies may accept consumer payments via cards, mobile wallets, and wearables when a card or device is passed over the phone or tablet's Near Field Communication (NFC) scanner. Customers should provide a PIN for payments above USD 200 for added security.
April 2022 - P97 Networks, a mobile commerce platform, has partnered with Viva Energy Australia to develop a fleet management and driver app. The Shell Card Go app offers contactless mobile payments to fleet managers and drivers, allowing authorized drivers to pay for the fuel at Shell, Liberty, and Coles Express locations, as well as allowing users to find stations, view site details, and earn rewards, as well as easily access their transaction histories.

Australia Mobile Payment Market Leaders

Apple Inc. (Apple Pay)
Paypal Inc.(Paypal)
Google LLC(Google Pay)
Afterpay Limited (Block, Inc.)
Commonwealth Bank of Australia (CommBank Tap & Pay)

*Disclaimer: Major Players sorted in no particular order

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Australia Mobile Payment Market News

May 2022 - Volopay has been accepted under Visa's Fintech Fast Track program. Volopay, a Y-Combinator-backed corporate cards, and payable management fintech firm, announced today that it had signed a partnership with Visa to participate in Visa's Fintech Fast Track Program, which will significantly expand Volopay's offering of financial management solutions in the Australian market.
September 2021 - PayPal partners with Garage Sale Trail - providing QR codes for touch-free, in-person payments at thousands of garage sales across Australia. PayPal QR codes can allow rapid, easy, and touch-free payments at Australia's largest environmental and community event. Every year, thousands of families, schools, and community organizations throughout the country join Garage Sale Trail to sell pre-liked items, allowing them to access hundreds of thousands of customers over two weekends.

Australia Mobile Payment Market Report - Table of Contents

1. INTRODUCTION
1. 1.1 Study Assumptions and Market Definitions
2. 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
1. 4.1 Market Overview
2. 4.2 Market Sizing and Estimates of Australia Mobile Payments Market
3. 4.3 Industry Attractiveness-Porter's Five Force Analysis
  1. 4.3.1 Bargaining Power of Suppliers
  2. 4.3.2 Bargaining Power of Buyers
  3. 4.3.3 Threat of New Entrants
  4. 4.3.4 Threat of Substitute Products
  5. 4.3.5 Intensity of Competitive Rivalry
4. 4.4 Assessment of COVID-19 Impact on the market
5. MARKET DYNAMICS
1. 5.1 Market Drivers
  1. 5.1.1 Growing Awareness for E-Wallet and E-Commerce to Drive the Market
  2. 5.1.2 Development of M-Commerce Platforms and Increasing Internet Penetration
2. 5.2 Market Challenges
  1. 5.2.1 Security Issues Associated with Mobile Payments
3. 5.3 Analysis on Enabling Technologies (Coverage to include NFC, QR, etc.)
4. 5.4 Key Regulations and Standards in the Mobile Payments Industry
6. MARKET SEGMENTATION
1. 6.1 By Type (Market share in percentage based on relative adoption)
  1. 6.1.1 Proximity
  2. 6.1.2 Remote
7. COMPETITIVE LANDSCAPE
1. 7.1 Company Profiles
  1. 7.1.1 Apple Inc. (Apple Pay)
  2. 7.1.2 Afterpay Limited (Block, Inc.)
  3. 7.1.3 Paypal Inc. (Paypal)
  4. 7.1.4 Google LLC (Google Pay)
  5. 7.1.5 Commonwealth Bank of Australia (CommBank Tap & Pay)
  6. 7.1.6 Zip Co Limited (ZipPay)
  7. 7.1.7 Australia and New Zealand Banking Group Limited (ANZ Tap and Pay)
  8. 7.1.8 Bank Australia Tap and Pay
  9. 7.1.9 Alibaba Group Holding Limited (Alipay)
  10. 7.1.10 National Australia Bank Limited (NAB Pay)
  11. 7.1.11 SAMSUNG ELECTRONICS CO., LTD. (Samsung Pay)
2. *List Not Exhaustive
3. 7.2 Vendor Positioning Analysis
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET

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Australia Mobile Payment Industry Segmentation

Mobile payments help automate payment processes by providing an alternative mode of payment via a portable electronic device such as a smartphone or tablet. Mobile payments can also make digital financial transfers rather than paying with a check or cash. Mobile payment technology has many applications in industries such as movie tickets, restaurants, and retail stores. The market tracks the transaction volume of mobile payments made in Australia. Australia Mobile Payment Market is Segmented By Type (Proximity and Remote).

By Type (Market share in percentage based on relative adoption)
		Proximity
		Remote

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Australia Mobile Payment Market Research FAQs

What is the current Australia Mobile Payment Market size?

The Australia Mobile Payment Market is projected to register a CAGR of 12.5% during the forecast period (2024-2029)

Who are the key players in Australia Mobile Payment Market?

Apple Inc. (Apple Pay), Paypal Inc.(Paypal), Google LLC(Google Pay), Afterpay Limited (Block, Inc.) and Commonwealth Bank of Australia (CommBank Tap & Pay) are the major companies operating in the Australia Mobile Payment Market.

What years does this Australia Mobile Payment Market cover?

The report covers the Australia Mobile Payment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Australia Mobile Payment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Australia Mobile Payment Industry Report

Statistics for the 2024 Australia Mobile Payment market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia Mobile Payment analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Study Period	2019 - 2029
Base Year For Estimation	2023
Forecast Data Period	2024 - 2029
Historical Data Period	2019 - 2022
CAGR	12.50 %
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order

Study Period:
CAGR:
Countries/ Region Covered:
Major Players:

Australia Mobile Payment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)