Popular payment methods in Australia: A complete guide for 2025

Australia has rapidly transitioned to a cashless society, driven by the convenience and security of digital payment methods. As the ecommerce landscape grows, Australian consumers are opting for contactless, digital-first transactions over traditional cash payments. For businesses, understanding the most popular payment methods in Australia is essential for providing seamless and efficient customer experiences. This guide offers a comprehensive overview of the payment methods Australians prefer and how merchants can leverage these trends for growth.

What are the most popular payment methods in Australia?

Australia’s payment landscape is dominated by digital wallets, credit cards, Buy Now, Pay Later (BNPL), and BPAY. Below is a detailed breakdown of each method:

1. Digital Wallets
   Digital wallets, including Apple Pay, Google Pay, and Samsung Pay, have seen significant growth, particularly for contactless payments. These wallets allow consumers to store their payment information securely on their mobile devices, providing speed and convenience at checkout. In 2021, monthly digital wallet transactions increased by 90%, illustrating their dominance.
2. Credit and Debit Cards
   Despite the rise of alternative payment methods, credit and debit cards remain widely used, with Visa and Mastercard continuing to lead the market. Most merchants accept these cards both online and in-store, benefiting from the security protocols like 3-D Secure.
3. Buy Now, Pay Later (BNPL)
   BNPL services like Afterpay, Zip, and Klarna are rapidly gaining traction, especially among younger consumers. This flexible payment option allows customers to make purchases immediately and pay off the balance in installments, without interest, boosting consumer purchasing power. BNPL is expected to grow by 20% annually through 2028 in Australia. Dive deeper into payment trends in Australia.
4. BPAY
   A trusted method for bill payments, BPAY allows consumers to use their banking apps to pay bills. It is popular due to its simplicity, security, and integration with nearly all major financial institutions in Australia.
5. Cryptocurrency Payments
   While still niche, cryptocurrency is gaining interest among Australians, particularly among tech-savvy users. Some merchants have begun accepting Bitcoin and Ethereum as payment options, although their mainstream use is still limited compared to traditional payment methods.

What is the most used payment method in Australia?

The most used payment method in Australia is digital wallets. Consumers favor Apple Pay, Google Pay, and Samsung Pay for contactless transactions. This trend is driven by their convenience, security features, and widespread merchant acceptance. Additionally, the COVID-19 pandemic accelerated the adoption of contactless payments, making digital wallets the go-to option for millions of Australians.

What do people use to pay in Australia?

Australians predominantly use digital wallets, credit cards, and Buy Now, Pay Later services for payments. In-store, contactless payments through digital wallets and cards are standard, while BNPL has become a favored option for online purchases. Additionally, BPAY is commonly used for bill payments, and cryptocurrency is slowly making its way into the payment ecosystem.

For more details on emerging payment trends, visit our comprehensive guide.

What payment app does Australia use?

Australia widely uses Apple Pay, Google Pay, and Samsung Pay for contactless payments. These mobile wallets are widely accepted by most retailers and are integrated into the everyday purchasing experience. Additionally, PayPal remains a popular option for online transactions, offering secure payments for both ecommerce and peer-to-peer transfers.

If you’re interested in understanding more about payment approval rates, check out how to optimize approval rates in ecommerce transactions.

Does Australia use Cash App or PayPal?

While Cash App is not widely used in Australia, PayPal is a leading platform for both online shopping and money transfers. PayPal’s secure and user-friendly interface makes it a popular choice for both consumers and businesses. Additionally, Venmo, owned by PayPal, is also starting to gain traction for peer-to-peer payments.

What are the payment trends in Australia?

Australia is experiencing several key trends that are shaping its payment landscape:

1. Contactless Payments: The rise of digital wallets has transformed the way consumers make in-person payments. By 2024, contactless payments are expected to dominate the retail space, with digital wallets leading the charge.
2. BNPL Growth: Buy Now, Pay Later (BNPL) is one of the fastest-growing payment trends in Australia, particularly in ecommerce. It offers flexibility for consumers and drives conversion rates for merchants.
3. Increased Payment Security: As digital payments grow, so does the emphasis on fraud prevention. Merchants are investing in advanced fraud detection and prevention tools, including tokenization and 3-D Secure, to safeguard transactions. Learn more about how to prevent ecommerce fraud.
4. Cryptocurrency Adoption: While still a niche payment method, cryptocurrencies like Bitcoin and Ethereum are gaining ground as alternative payment options in Australia. Though mainstream adoption is limited, some merchants now offer cryptocurrency payment options to cater to tech-savvy consumers.

Additional payment methods used in Australia

Australia’s payment ecosystem extends beyond digital wallets and BNPL services. Here are some additional payment methods used across the country:

• Direct Debit: For subscriptions and recurring payments, direct debit from bank accounts remains a popular option.
• POLi Payments: An online payment method allowing consumers to pay directly from their bank account without needing a credit or debit card.
• EFTPOS: Widely used for in-person debit transactions, EFTPOS is a secure and instant payment method, connecting directly to the customer’s bank account.

For merchants looking to integrate these payment methods, explore Gr4vy’s payment orchestration integrations in the APAC region.

FAQs about payment methods in Australia

What is the most used payment method in Australia?
Digital wallets, particularly Apple Pay and Google Pay, are the most used payment methods, especially for contactless payments.

What do people use to pay in Australia?
Australians use digital wallets, credit/debit cards, Buy Now, Pay Later services, and BPAY for payments, depending on the context.

What payment app does Australia use?
Australia’s top payment apps are Apple Pay, Google Pay, and Samsung Pay. PayPal is widely used for online transactions.

Does Australia use Cash App or PayPal?
While Cash App is not common in Australia, PayPal is widely used for both online shopping and peer-to-peer money transfers.

What are the payment trends in Australia?
Key trends include the rise of contactless payments, BNPL, enhanced payment security, and increasing cryptocurrency adoption.

Australia’s payment landscape is rapidly evolving, with digital wallets, BNPL, and contactless payments shaping the future of transactions. To stay competitive, merchants must adapt by integrating these popular payment methods. By offering a variety of payment options and staying informed about the latest trends, businesses can enhance customer satisfaction and drive growth.

Ready to optimize your payment methods for the Australian market? Contact Gr4vy today to learn how our payment orchestration platform can streamline your payment processes and integrate seamlessly with your business.