Australia payment card market to grow by 5.2% in 2025 to $1.2 trillion: GlobalData
The Australian payment card market (including at POS and ATM cash withdrawals) is expected to grow by 5.2% to reach AUD1.2 trillion in 2025, supported by constant consumer shift towards non-cash payments, forecasts GlobalData, a leading data and analytics company.
GlobalData’s Payment Card Analytics reveals that card payments value (including payments at physical POS and those initiated remotely) in Australia registered a healthy compound annual growth rate (CAGR) of 11.2% between 2020 and 2024 to reach AUD1 trillion in 2024. On the other hand, card usage for ATM cash withdrawals remained almost flat with total ATM withdrawals registering a marginal CAGR of 0.2% during the same period.
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, commented, “Although cash remains prevalent in Australia, it is gradually losing ground to electronic payments. Australia’s payment card market is well developed with everyone holding over two cards along with the highest frequency of card payments in the Asia-Pacific region, which stands at 238 in 2024. The widespread adoption of contactless payments, growing preference for electronic payments, and the burgeoning e-commerce market are all contributing to this growth.”
The share of ATM cash withdrawals now represents 9.5% in 2025, much lower compared to 13.8% in 2021, highlighting the growing preference for digital payment methods, which offer greater convenience and security. However, cash is still used for day-to-day, low-value transactions—especially by older and vulnerable individuals who may not be comfortable with digital payments.
Card payments at POS terminals, on the other hand, are steadily increasing, with its share is estimated to reach 90.9% in 2025. This growth can be attributed to the rising consumer awareness, and growing POS terminalization. The number of POS terminals per one million inhabitants in Australia rose from 36,012 in 2020 to 40,055 in 2025. In addition to the traditional POS terminals, companies are offering POS solutions designed to target SMEs.
The growing popularity of contactless payment has also driven the overall card usage at POS, gradually displacing cash for day-to-day transactions. Backed by most banks and financial institutions in the country, contactless payments have become increasingly prevalent and are also widely accepted by most retailers. This growth can be attributed to the widespread adoption of contactless payments in transportation further aiding adoption.
Sharma concluded, “Looking ahead, Australia’s card payment landscape is poised for steady growth over the next five years, driven by the increasing adoption of payment cards amid a boarder digital transformation. Rising consumer preference for digital payments, and well-developed card acceptance infrastructure are expected to further drive/support this growth. Subsequently, the card payments market is anticipated to increase at a compound annual growth rate of 5.2% between 2025 and 2029.”
