Whilst COVID-19 hampered this rise, growth is expected to pick up again through 2024.
The value of card payments in Australia registered a 1.9% growth in 2020, lower than previous estimates of a 5.3% rise, reports data and analytics firm GlobalData.
The pandemic slowed down consumer and commercial spending in 2020. With the economy expected to gradually recover, the growth is expected to improve to a compound annual growth rate (CAGR) of 5.7% between 2020 and 2024 to reach $613.6b (A$872.9b) in 2024.
Whilst the COVID-19 outbreak has hampered the growth of payments market in the short-run in Australia, it is expected to grow at a robust pace over the next four years, supported by a well-developed payment infrastructure and high contactless adoption, according to Nikhil Reddy, banking and payments analyst at GlobalData.
“Australians are prolific users of payment cards, with the frequency of card payments at 172 times in 2020, one of the highest in the Asia-Pacific region. The shift from low-value cash transactions to contactless card payments is supporting this growth,” he said.
Australia is one of the most developed contactless card markets with majority of the consumers using contactless cards, notes GlobalData. Due to the current pandemic, the use of contactless cards is on the rise as smaller merchants are now insisting on non-cash and contactless payments.
To encourage the shift away from cash, the limit for contactless card payment was temporarily increased from A$100 ($70.30) to A$200 ($140.59) effective April 2020.
Do you know more about this story? Contact us anonymously through this link.