New research has revealed that alternative payment methods such as ‘digital wallets’ will soon account for more than 34 per cent of all e-commerce sales in Australia.
Research firm GlobalData projects that Australia’s e-commerce market will increase by 10.3 per cent in 2023 to reach $AU74.9 billion.
GlobalData senior analyst Shivani Gupta said these figures are driven by the expanding availability of secure online payment options and the increasing number of customers who prefer to shop online.
“Payment cards are followed by alternative payment tools, which collectively account for a 34.1 per cent share in 2023,” she said.
“Alternative payments are increasingly preferred by Australians with some of the popular brands being PayPal and Apple Pay.”
Credit and charge cards remain the most popular payment method due to added benefits schemes.
The financial services consumer survey was completed in the second quarter, recording more than 50,000 respondents in 40 countries.
“The growing popularity of alternative payment solutions, especially among the younger generation, is expected to further accelerate the shift away from cards and these alternative payments are therefore all set to challenge the dominance of payment cards over the next five years.”
Buy now, problems later
A survey conducted by Financial Counselling Australia has raised alarm about people using ‘buy now pay later’ (BNPL) services for everyday essentials.
Chief executive Fiona Guthrie said the findings were deeply concerning.
“BNPL was never intended as a way to pay for everyday living expenses,” she said.
“But the ease of accessing BNPL loans, combined with mounting cost-of-living pressures, has meant more people are resorting to it just to get by. With BNPL so hard to keep track of, debts can very easily snowball, leading far more people to seek financial counselling.”
More than 500 financial counsellors completed the survey with 71 per cent reporting that clients were using BNPL for essentials such as food. A further 41 per cent said they were using it for petrol.
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