How to choose payment methods for your Australian business

Key takeaways

• Debit and credit cards, digital wallets, bank transfers and BNPL are some of the most popular payment methods in Australia

• 77% of consumers will abandon their cart if their preferred payment method isn't available – which is why offering variety matters. Platforms like Airwallex give you 160+ payment methods to cover your bases

• Airwallex brings payment choice to your customers, with our payment solution offering 160+ payment methods including the major card schemes, the option to collect payments in 130+ currencies, and like-for-like settlement to avoid forced conversion.

As a business owner, the payment methods you accept can have a huge impact on revenue. Most customers want to pay with their preferred method, and if they can’t, they may walk (or click) away.

Cash has been in decline for a while now, especially among younger generations; in Australia, under-25s use it for just 3% of their transactions.¹ Meanwhile, digitised options are surging in popularity across all age groups.

It can be tough to keep up with changing customer preferences, which is why we’ve put together this guide.

In this guide, we'll walk you through some of the most popular online payment methods in Australia, including card transactions, digital wallets, bank transfers, and buy now, pay later (BNPL). We’ll also cover the key questions to ask payment processors so you can pick the best service for your business.

What is the most popular payment method in Australia?

Card transactions are the most popular payment method in Australia, accounting for 76% of payments.² As cash use has decreased, debit and credit cards have become the most convenient go-to. 94% of these card payments are contactless, and one-third of those are via a mobile device (often using digital wallets like Google Pay or Apple Pay).

Popular payment methods in Australia

Payment methods have become so critical to the customer experience that they directly impact revenue. In fact, 77% of consumers claim they will likely abandon their cart if their preferred payment method is unavailable. So, while no single payment type is best, offering the most popular payment methods can positively impact your bottom line.

Here's a quick comparison of the most popular payment methods in Australia.

Let's look at each of these in more detail:

Debit and credit cards

Debit and credit cards are already widely used, and their popularity keeps growing thanks to the continued growth of online shopping and the convenience and security they offer. The major card providers are Visa, Mastercard, and American Express.

Most businesses accept debit and credit cards, making them a convenient option for everyone involved. Card payments make it easy to complete quick transactions, with useful features like tap-and-go.

Note that every card transaction comes with a cost, with card payments attracting fees charged by the card issuing bank, the card network, and the payment processor. While you can’t avoid these fees altogether, you can minimise them by selecting the right payment processing partner and passing a portion on to customers as a surcharge.

Digital wallets

Digital wallets let you make contactless payments using your smartphone or smartwatch, through platforms like Apple Wallet, Google Wallet, and Samsung Pay. Since 2018, digital wallet transactions have increased by 8,100%, with transaction values rising by 12,300%.³

Today, Australians are amongst the top users of cashless and digital payments globally.

Digital wallets offer ease, speed, and convenience. For consumers, setting up a digital wallet is as easy as adding credit card details to a digital wallet app, which lets them make purchases by simply tapping their device. Digital wallets offer additional security features, such as fingerprint or PIN verification.

To accept digital wallet payments, you'll need a point-of-sale (POS) system that supports them. This may involve renting a compatible EFTPOS (electronic funds transfer at point of sale) machine or downloading an app onto a compatible device.

Bank transfers

Bank transfers – including direct deposits and BPAY – are popular for both personal and business transactions. They are especially popular for recurring payments and larger transactions.

Direct bank transfers offer strong security, so they're generally a safe and reliable choice. They also work well for larger transactions, since they generally have higher limits than other payment methods.

Depending on the banks involved, transfers can take anywhere from a few hours to a few days. They're also limited to bank operating hours and don't give you instant payment confirmation, which makes them less convenient than some other options.

Buy now, pay later (BNPL)

BNPL services, such as Afterpay, ZipPay, and Klarna, have grown in popularity. These services let customers buy now and pay in instalments over time, instead of paying the full amount upfront. According to NAB's Australian Wellbeing Survey (June 2025), 20% of Australians have BNPL accounts, with 30-49 year olds (26%) and 18-29 year olds (23%) being the most likely to use these services.⁴

Customers being able to use BNPL to spread payments over time is appealing — especially for bigger purchases. So, offering this as a payment method can help attract more customers, boost sales, and make the buying experience better overall.

Note that BNPL fees are often higher than traditional payment methods and typically include a percentage of the transaction value. BNPL can also contribute to customer debt issues and may present a reputation risk for ethical brands.

How to choose the right payment methods for your business

Comparing the right payment methods for your business comes down to knowing what your customers prefer, comparing costs honestly, keeping security tight, and making sure everything works with your existing systems. The goal? A mix that keeps your customers happy and your costs under control – without compromising on fraud protection.

Every business is different, but these are the main factors that'll help you make the right call:

Understand your customers' preferences

Understanding how your customers prefer to pay is the first step. Here's how to gather insights:

• Ask customers directly: Use surveys, polls, or customer service interactions to learn their payment preferences.

• Analyse purchase history: Review transaction data, abandoned carts, and value-per-transaction metrics to identify patterns and missed opportunities.

• Study market demographics: Review research on payment preferences across demographics and purchase types. For more data on shopping habits, take a look at our 37 eCommerce statistics to help boost your sales.

Compare fees and costs

Payment processing fees eat into your margins, so it's worth getting a clear picture of what you'll actually pay.

Look at the full picture: transaction fees, currency conversion fees, settlement times, set-up costs, and any ongoing maintenance charges.

Want to compare your options? We've put together a detailed breakdown of the top payment processing providers.

Review security and fraud protection measures

With the rise in high-profile data and security breaches in recent years, it's no wonder security is top of mind for businesses and consumers alike. To reduce the risk of financial loss, legal trouble, and reputational damage, you need payment methods that meet the highest security standards and robust fraud detection.

There are three key areas to pay attention to:

• Authentication: This is how you confirm everyone in a transaction is who they say they are. Think CVV codes and multi-factor authentication, which are there to prevent card fraud.

• Confidentiality: This keeps your customer data and card details private — both when they're being sent and when they're stored — mainly through encryption.

• Integrity: This makes sure transaction data stays accurate and hasn't been tampered with, using methods like digital signatures and secure protocols.

Consider integration with your existing systems

Your payment methods need to work well with your existing software – whether that's your eCommerce platform, accounting tools, or CRM. Integrated payments keep your operations smooth so payment processing doesn't become a headache.

With the right payment processing provider handling integrations for you, you can:

• Automatically sync, reconcile, and categorise transactions and make it easier for your customers to pay you worldwide

• Simplify order data and inventory management

• Let global customers pay in their preferred currencies and payment methods

• Start automating common processes without coding

Find out what set-up and maintenance look like, and what skills you'll need on your team to manage it.

Offer multiple payment methods

Offering multiple payment methods is now a key part of a smooth checkout experience. In fact, 84% of consumers say a wide range of payment options that speed up checkout is essential or important.⁵

Here's why variety matters for your checkout:

• Customer choice: Your customers get the flexibility to pay using the method they prefer.

• Back-up options: If one payment method fails or doesn't suit, your customers have alternatives ready to go.

• Smooth checkout: A convenient, hassle-free purchase experience that keeps customers coming back.

Why businesses choose Airwallex for payments

With Airwallex, you can accept payments from customers worldwide via their preferred payment methods – no coding required. Here's why businesses choose us as their payment solutions provider:

• Payment choice: Airwallex brings payment choice to your customers. Our payment solution offers 160+ local payment methods, plus processing with all major schemes including Visa, Mastercard and Amex.

• Multi-currency payment acceptance: With Airwallex, you can also collect payments in 130+ currencies and settle like-for-like in 20+ currencies, allowing you to avoid forced conversions.

• Global reach: We offer multi-currency accounts and high-speed international transfers, so you can operate globally with ease. You can open local currency accounts in 21 countries, accept payments from 70+ countries, and make transfers to 200+ countries.

• Cost efficiency: By offering competitive interbank rates and minimising unnecessary foreign exchange fees, we can help you improve your profit margins and free up funds to grow your business.

• eCommerce and checkout solutions: Our platform integrates with software such as Xero and Shopify, helping simplify your financial operations. We also have our own checkout solution to let customers pay in their own currency.

• Security and reliability: With 80+ security licences and permits globally, we meet the highest international security standards and local requirements.

• Proven track record: Over 200,000 businesses trust us to help manage their global payments and finances.

Choosing the right payment methods for your business growth

Choosing the right payment methods for your Australian business comes down to four things: understanding what your customers prefer, comparing costs honestly, keeping security tight, and making sure everything integrates with your existing systems. With many consumers abandoning carts when their preferred payment method isn't available, offering the right payment mix is a growth strategy as much as a practical choice for your business.

Start by looking at your customer demographics and how they buy, then compare providers fees, security standards, and how well they integrate with your set-up. The Australian payments landscape is changing fast, so staying on top of trends – while keeping your payments secure and cost-effective – is how you stay ahead.

FAQs about payment methods

What are the most popular online payment methods in Australia?

Popular online payment methods in Australia include credit and debit cards, bank transfers, BPAY, digital wallets such as PayPal, and Buy Now, Pay Later (BNPL) services like Afterpay and ZipPay.

How quickly can I set up a payment method?

The time taken depends on the payment method and the payment provider chosen. Digital wallets can often be set up within minutes to a few hours, while integrating a new credit card processor or setting up bank transfers might take a few days to a week. Online payment platforms such as Airwallex streamline this process, offering fast and efficient setups for your business. 

Is it expensive to set up a payment method?

The cost of setting up a payment method varies based on the provider and services needed. While digital wallets and online payment platforms have minimal setup costs, integrating credit card processors or comprehensive payment solutions may include initial setup fees and ongoing transaction charges. Airwallex offers competitive pricing and cost-effective solutions for setting up different payment methods for your business.

What is the safest way to pay online in Australia?

The Australian government recommends using a credit card, BPAY, or PayPal to maximise security.⁶ These methods let you open a dispute if you encounter issues like unauthorised payments. But it’s still important to take precautions. For instance, it’s best to avoid using online banking services while connected to public WiFi networks and sending sensitive financial information over email or SMS.

References

1. https://rfi.global/the-revolution-of-payments-in-australia/

2. https://www.rba.gov.au/snapshots/how-australians-pay-snapshot/

3. https://www.ausbanking.org.au/bank-on-it-customer-trends/

4. https://www.finder.com.au/buy-now-pay-later/buy-now-pay-later-statistics

5. https://www.commbank.com.au/business/foresight/reports/consumer-insights-report.html

6. https://www.cyber.gov.au/protect-yourself/staying-secure-online/shopping-and-banking-online/online-shopping/while-you-are-shopping

Disclaimer: This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) it is important for you to read the Product Disclosure Statement (PDS) for the Direct Services, which is available here.