Australian card payments market to grow at 6.3% in 2025
The Australian card payments market is projected to reach AUD1.1 trillion in 2025, growing at 6.3% compared to the previous year. This growth is driven by the rising consumer spending and increasing consumer preference for cashless transactions, reveals GlobalData, a leading data and analytics company.
GlobalData’s report, “Australia Cards and Payments: Opportunities and Risks to 2028”, reveals that card payment value in Australia registered a growth of 7.2% in 2024, supported by nearly 100% banked population and strong payment acceptance infrastructure. The value grew further to register an estimated growth of 6.3% in 2025 to reach AUD1.1 trillion.
Commenting on the Australian card payments market, Poornima Chinta, Senior Banking and Payments Analyst at GlobalData, said, “Australia’s payment card market is well developed with each individual holding over two cards along with the highest frequency of card payments in the Asia-Pacific region, which stands at 238 in 2024. Widespread adoption of contactless payments, growing preference for electronic payments, and the burgeoning ecommerce market are all contributing to this growth.”
A well-developed payment infrastructure, with strong POS terminal uptake, is also a major driver for the rise in card payments. The number of POS terminals per one million inhabitants in Australia rose from 36,012 in 2020 to 40,046 in 2025. In addition to the traditional POS terminals, companies are offering POS solutions designed to target SMEs. For instance, Fiserv launched its Clover POS solution in March 2025, specially targeting SMEs operating in the hospitality, service, and retail sectors.
Debit card payments held a significant share of the total card payments market, accounting for 58.9% in the total payment value in 2024. The growing popularity of debit cards can be attributed to their convenience and the increasing consumer inclination towards budgeting and managing expense.
Credit and charge cards, on the other hand, accounted for the remaining 41.1% share in value in 2024. Consumer reluctance towards taking credit-card debt and the growing uptake of BNPL solutions such as Afterpay and Klarna are posing a threat to the credit and charge card market.
Contactless cards are also widely used in Australia with strong penetration and awareness. Australian consumers and financial institutions alike have embraced the technology, with extensive acceptance infrastructure in the country being the major reason why these cards are so popular.
According to GlobalData’s 2024 Financial Services Consumer Survey, 77% of the respondents in Australia indicated having access to a contactless card and used it for payments.
Chinta concluded, “The Australian card payments market is expected to continue its upward growth trajectory driven by the convenience of electronic payments, widespread payment infrastructure, and the increased accessibility of contactless technology. The card payments market is anticipated to increase at a compound annual growth rate of 5.2% between 2025 and 2029 to reach AUD1.4 trillion in 2029.”
