Australia’s Credit Card Market on Track for Significant Growth, Expected to Reach $299.7 Billion by 2025
Australia’s credit and charge card payments sector is poised for robust expansion, with projections indicating a surge to $299.7 billion (AUD 453.9 billion) by 2025. This growth is predominantly fueled by increasing consumer spending, a resilient payment infrastructure, and a thriving e-commerce landscape, as reported by GlobalData.
Strong Consumer Spending Drives Momentum
In 2024, the market value for credit and charge card payments experienced a notable increase of 6.3%. This upswing is largely attributed to rising consumer spending and the appeal of value-added benefits, including cashback rewards and flexible repayment options.
Kartik Challa, Senior Banking and Payments Analyst at GlobalData, emphasized that Australians are increasingly aware of the advantages of credit card usage. “Consumers frequently utilize these cards to capitalize on benefits, such as cashback offers and rewards programs,” he stated. The boom in consumer appreciation is pivotal to the ongoing growth of this sector.
Boosted by E-Commerce and Payment Infrastructure
The credit and charge card market’s upward trajectory is bolstered by improvements in payment infrastructure and the burgeoning e-commerce domain. In 2024, Australians averaged 225.5 transactions per card, with expectations to rise to 239.5 by 2029. Key players in retail banking, such as Commonwealth Bank and NAB, are further supporting this trend by offering innovative repayment solutions like “SurePay” and the “Now Pay Later” program.
Moreover, Australia is rapidly enhancing its payment capabilities, boasting 39,031 point-of-sale (POS) terminals per million inhabitants as of 2024—outpacing countries such as China and Hong Kong.
E-Commerce Payments Gain Traction
E-commerce payments are a significant contributor to this growth, with credit and charge cards accounting for 22.5% of online transactions in 2024. This alignment with consumer trends suggests a growing reliance on digital payment methods as online shopping habits evolve.
To further assist consumers in managing debt, many Australian banks are introducing programs like debt consolidation and balance transfer options. For example, ANZ offers customers the ability to transfer their existing balances to an ANZ card, simplifying payment processes.
Future Outlook: Navigating Challenges Ahead
Looking ahead, Challa notes that while the outlook remains bright for Australia’s credit card market—anticipated to grow at a CAGR of 4.4% to reach $356 billion (AUD 539.1 billion) by 2029—external factors such as global trade complexities and geopolitical concerns could temper this growth.
As the credit card market continues to expand, its implications are profound for the retail sector and consumers alike, enhancing purchasing power while fostering innovative financial solutions to navigate economic shifts. The increasing prominence of credit and charge cards is likely to shape the future of consumer spending in Australia, making it a space to watch closely.
