Australia Prepaid Card and Digital Wallet Report 2024: A $30.86 Billion Market by 2028 – Half of Businesses are Planning to Invest in Digital Payments in the Australian Market

Dublin, June 04, 2024 (GLOBE NEWSWIRE) — The “Australia Prepaid Card and Digital Wallet Business and Investment Opportunities Databook – Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend – Q1 2024 Update” report has been added to ResearchAndMarkets.com’s offering.

The prepaid card market in Australia increased at a CAGR of 8.6% during 2019-2023. Over the forecast period of 2024 to 2028, the market is expected to record a CAGR of 9.6%, increasing from US$19.22 billion in 2023 to reach US$30.86 billion by 2028.

Prepaid payment instruments like digital wallets are increasingly becoming the first payment choice among Australians, especially among Gen Z and millennial consumer demographic. The growing popularity is also driving the competitive landscape, with more businesses planning to invest in digital payments over the medium term. Retail, finance, and insurance are among the leading sectors experiencing strong adoption of digital wallets.

Amid the growing adoption and usage of digital wallets, the Australian government is also seeking to phase out cheques in the country. Furthermore, the government is also planning to regulate digital wallets like Apple Pay and Google Pay under the same regulatory oversight as credit cards.

Half of businesses are planning to invest in digital payments in the Australian market

Based on the report from the University of Sydney Business School and Stripe, approximately half of the businesses are seeking to invest in digital payments over the medium term in Australia. This comes at a time when the adoption of digital payment methods like Apple Pay and Google Pay has been on the surge, especially among young generation consumers.

The report further revealed Victorian businesses are at the forefront of digital wallet adoption. More than a third (38%) are accepting the payment method. New South Wales and Queensland are following Victoria (at 34%) in terms of digital wallet adoption. At the industry level, retail leads the adoption of digital wallets at 57%, followed by finance and insurance sectors at 49% in Australia.

While the adoption continues to grow in the Australian market, businesses are worried about fraud and scams. Businesses, notably, are seeking reassurance that their payment service providers have robust security and fraud prevention strategies in place. This is also one of the reasons why the adoption of reputable digital wallets like Google Pay and Apple Pay is growing at a rapid rate compared to others.

Regulators are seeking oversight on digital wallets alongside credit cards in the Australian market

The Australian government plans to change existing laws to regulate digital payment services like Apple Pay, Google Pay, and other digital wallets. The goal is to put these services under the same rules as traditional payment methods such as credit cards. This move is part of an initiative to modernize Australia’s payment system.

With the rising popularity of digital wallets from major tech companies like Apple, Google, and Tencent’s WeChat, the government acknowledges the necessity of updating regulations to ensure secure and efficient transactions. The proposed changes aim to encourage more competition, innovation, and productivity in the overall economy by addressing the growing use of digital payments.

The government is planning to phase out cheques by 2030 amid higher adoption of digital wallets

Treasurer, Jim Chalmers, revealed that the government is moving to phase out cheques by no later than 2030 in Australia. Cheque payments, in comparison to digital wallets, are more expensive. Furthermore, the report from the Australian Banking Association revealed that cheques are just 0.2% of all payments in Australia. This has been declining consistently over the last few years. Consequently, the government is planning to eliminate the payment method entirely over the next few years.

According to the Australian Banking Association, the use of mobile wallet transactions has surged, going from A$746 million in 2,018 to over A$93 billion in 2022. Over 15.3 million cards were linked to mobile wallets in 2022, representing a notable rise from 2,018 when there were just around 2 million cards associated with mobile wallets. The trend is projected to further continue over the medium term, thereby supporting the growth of the prepaid card industry in Australia.

This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Australia. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.

• Market dynamics: Provides a comprehensive view on size and structure, industry dynamics, market trends, consumer attitude and behaviour, and competitive landscape in prepaid card and digital wallet industry.
• Digital wallet segments: Provides value, volume and average value per transaction across 5 key spend categories in digital wallet. This includes retail, travel, entertainment and gaming, restaurant, and recharge and bill payment.
• Open loop and closed loop prepaid cards: market estimates and forecasts to assess opportunities 12 open loop and closed loop prepaid market segments. Details four essential KPIs – number of cards in circulation, number of transactions, load value, and value of transactions.
• Virtual Prepaid Cards: Provides transaction value analysis across 12 key prepaid card catergories for Virtual Prepaid Cards.
• Detailed Market Share Analysis by Key Players in the Prepaid Card Market.
• Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key prepaid KPIs, including spend by age, gender, and income level.
• Retail spend: Breaks down retail spend across 11 categories to provide detailed insights on consumer behaviour and changing dynamics of prepaid card spend.

Report Scope

This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Australia. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.

• Australia Prepaid Payment Instrument Market Size and Forecast
• Australia Digital Wallet Market Size and Forecast by Key Segments
• Australia Digital Wallet Spend by Key Retail Categories
• Australia Prepaid Card Industry Market Attractiveness
• Australia Open Loop Prepaid Card Future Growth Dynamics
• Australia Closed Loop Prepaid Card Future Growth Dynamics
• Australia Prepaid Card Market Share by Key Players
• Australia Prepaid Card Consumer Usage Trends
• Australia Prepaid Card Spend by Key Retail Categories
• Australia General Purpose Prepaid Card Market Size and Forecast
• Australia Gift Card Market Size and Forecast
• Gift Card Market Size and Forecast by Functional Attribute
• Gift Card Market Size and Forecast by Consumer Segments
• Gift Card Market Share Analysis by Retail Categories
• Gift Card Market Share Analysis by Gifting Occasion
• Gift Card Market Share Analysis by Purchase Location
• Australia Entertainment and Gaming Prepaid Card Market Size and Forecast
• Australia Teen and Campus Prepaid Card Market Size and Forecast
• Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute
• Australia Business and Administrative Expense Prepaid Card Market Size and Forecast
• Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments
• Australia Payroll Prepaid Card Market Size and Forecast
• Payroll Prepaid Card Market Size and Forecast by Consumer Segments
• Australia Meal Prepaid Card Market Size and Forecast
• Meal Prepaid Card Market Size and Forecast by Consumer Segments
• Australia Travel Forex Prepaid Card Market Size and Forecast
• Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments
• Australia Transit and Tolls Prepaid Card Market Size and Forecast
• Australia Healthcare and Wellness Prepaid Card Market Size and Forecast
• Australia Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast
• Australia Fuel Prepaid Cards Market Size and Forecast
• Australia Utilities, and Other Prepaid Cards Market Size and Forecast
• Australia Virtual Prepaid Card Industry Market Attractiveness
• Australia Virtual Prepaid Card Market Size and Future Growth Dynamics by Key Categories

For more information about this report visit https://www.researchandmarkets.com/r/4fapga

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