A thorough analysis of the cards, payments, consumer banking and merchant acquirer market in Australia.
Topics covered in our latest reports can cover consumer payment trends: the split between cash, card, transfers, digital wallets, direct debit as well as buy-now-pay-later (BNPL) trends: credit card data, including profit pools, profit drivers, country comparisons: acquirers and processors' market share, covering partnership prospects and online and e-commerce opportunities and the regulatory environment, with latest developments and forecast trends.
Why companion cards have left the Australian market.
How interchange has drawn regulatory action.
Which players are benefiting from Australia's contactless uplift.
How tech innovations are impacting the market.
What Open Banking means for issuers in Australia.
TABLE OF CONTENTS
Demographics and the economy
Australia cards market
Australian card networks
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendix I: Demographics and the economy
Demographic and economic indicators
Ownership of key consumer devices
Internet usage by population
Appendix II: Payments environment
Consumer payment trends
B2C e-commerce payment methods
Appendix III: Cards market
Total cards payment metrics
Contactless cards metrics
Credit card numbers
Australia credit card data metrics
Credit cards profitability indicators
Debit cards numbers
Debit cards metrics
Prepaid/e-money cards metrics
Appendix IV: Mobile payments
Mobile proximity payment metrics
Mobile P2P payments
Appendix V: Profit pool
Australian profit pool
Appendix VI: The card networks
Networks' credit card market shares
Networks' credit card data numbers
Networks' credit card billed volume
Networks' number of credit card transactions
Networks' average credit card transaction value
Credit card interchange fees by network
Networks' debit card market shares
Networks' debit card numbers
Networks' debit card billed volume
Networks' number of debit card transactions
Networks' average debit card transaction value
Debit card interchange fees by network
Appendix VII: Key retail banks and issuers
Key credit card issuers market shares by credit card numbers
Key issuers market shares in credit card outstandings
Key debit card issuers market shares by debit card numbers
Appendix VIII: Acquirers and processing
Merchant acquirer credit card market share
Credit card merchant service charges
Merchant acquirer debit card market share
Debit card merchant service charges
Credit card issuer, issuing processor relationships
Credit card acquirer, acquiring processor relationships
Credit card issuing processor market shares by card numbers
Credit card acquiring processor market shares by the number of POS transactions
Appendix IX: Online acquiring
Demographics and Economy
Australia's proximity to and strong trade and investment ties with Asia have fuelled the economy. For example, Chinese visitors numbered 1.43 million in 2018, spending about $8 billion.
While card use in Australia has long been among the highest globally, alternative digital payment methods are gaining prominence. The country's instant payment scheme went live in 2018 and Open Banking is being rolled out.
There were about 74 million cards in issue in Australia at the end of 2019, of which 20 million were credit cards, 43 million were debit cards and the remaining 10 million were prepaid cards.
Australians' attitude towards payments has been changing rapidly during the last decade. The use of cash as a mode of payment continues to decline as consumers increasingly shift to electronic payment methods, especially for smaller transactions; the country is slowly becoming a cashless society.
Australia's credit cards market is highly profitable, with high levels of spend per card, relatively high borrowing levels and a low default rate by international standards. According to VFR's profit pool model, profits have remained stable at around $2.2 billion per year.
Australia has a competitive credit cards market, with four of the major international brands – Visa, Mastercard, American Express and Diners Club – having a presence. Most major banks in the market issue just one of Visa- or Mastercard-branded credit cards.
Key Retail Banks and Issuers
The retail banking market in Australia is dominated by the 'Big Four': Commonwealth Bank (CBA), Westpac, Australia and New Zealand Bank (ANZ) and National Australia Bank (NAB). Combined, they control about 69 per cent of credit cards in issue. Prominent foreign banks include HSBC and Citibank.
Acquiring and Processing
With an estimated combined share of 67% in credit cards acquired billed volume and 74% in credit card transactions in 2019, the merchant acquiring market in Australia is dominated by NAB, Commonwealth Bank, Westpac and ANZ Bank. However, this hegemony has slowly reduced over the years.
Total consumer e-commerce spend in Australia is estimated to have been $45 billion in 2019, with about three-quarters of the population shopping online. E-commerce transactions are characterised by a trend for seeking bargains online.
Regulatory and Markets Information
In a move to make Australia a cashless society, the Reserve Bank of Australia (RBA), in association with financial institutions including ANZ Bank, Westpac and Commonwealth Bank, launched the New Payment Platform (NPP).
Australia and New Zealand Banking Group
Australian Bureau of Statistics
Australian Competition and Consumer Commission
Australian Securities and Investments Commission
Bank of Queensland
Bendigo and Adelaide Bank
Buy now pay later
Coco & Eve
Consumer data right
Eftpos Payments Australia
Illawarra Mutual Building Society
Internationale Nederlanden Groep
National Australia Bank
New Payments Platform
PayPal Credit Australia
Queenslanders Credit Union
Reserve Bank of Australia
Sand & Sky
St George Bank
Verisk reports delivering market and competitor intelligence on payments cards, e-money, acquiring/processing, retail banking, and consumer credit in the Asia Pacific region. Researchers use primary and secondary source data and conduct in-depth interviews with senior industry executives and Asia Pacific finance experts.
To find out more or to discuss subscription options, please email: firstname.lastname@example.org or telephone: +44(0)20 7337 4200.