Observations: Australia’s Payments Sector – Part 1
In this blog post series, I would like to highlight some of the learning that I made in the first couple of months working in Australia in the payments sector.
Having recently relocated and stepped into the Australian market, I’ve had the opportunity to view the landscape with fresh eyes—something that’s both challenging and incredibly insightful.
Australia’s payments ecosystem is mature, innovative, and fast-moving. From real-time payments to consumer expectations around digital experiences, there’s a lot to unpack. In this first post, I’ll focus on three key observations that stood out immediately.
1. Real-Time Payments Are Table Stakes
One of the first things that caught my attention is how deeply integrated real-time payments (RTP) are in everyday transactions. The New Payments Platform (NPP), launched in 2018, has seen widespread adoption. With PayID and Osko, consumers and businesses expect instant transfers—not just during business hours, but 24/7.
In Europe, while instant payments are gaining traction, adoption still varies widely. In Australia, it’s not a “nice-to-have”—it’s a baseline expectation. For anyone entering this market, it’s crucial to treat speed and availability as default features, not differentiators.
2. Card Schemes Still Dominate, but Debit is King
Despite the rise of RTP, card payments remain dominant—particularly contactless debit card transactions. Australians tap to pay almost everywhere, and the vast majority of those taps are done with debit cards rather than credit cards.
This has implications for pricing models, transaction economics, and consumer behaviour. Merchants and acquirers need to be laser-focused on cost efficiency and UX at the POS, while payment product developers should think about how to build features that resonate with a debit-first culture.
3. Digital Wallets: Ubiquitous but Fragmented
Apple Pay, Google Pay, and Samsung Pay are all supported—and widely used. In fact, mobile wallet usage is higher than in many European markets. However, there’s no single dominant app or platform beyond the big tech players.
This opens the door for niche wallet propositions, loyalty integrations, or financial wellness overlays—but also means fierce competition for visibility and engagement. The key takeaway? Interoperability and customer experience win here, not just clever branding.
Looking Ahead
These are just a few initial takeaways, and there’s much more to explore—from how interchange works in Australia, to the role of the Big Four banks, fintech competition, and the regulatory environment.
In the next post, I’ll take a closer look at how merchant acquiring is structured in Australia, and what that means for players across the value chain.