What Online Payment Methods Should Brands Provide in Australia?

australia payment methods

If your brand has been considering expanding your ecommerce business into Australia, now is a great time to do so. Ecommerce growth has never been better as more and more Australian consumers move online. Today we are putting the spotlight on a very crucial component of any brand’s cross-border ecommerce strategy: online payment methods in Australia.

While online shopping is gaining momentum among Australian consumers, those most likely to make online purchases are typically more technologically savvy than those who don’t shop online. With this considered, retailers need to think about digitally inclined shoppers when offering online payment methods in Australia.

Above all, Australian online shoppers want to see their favorite payment methods and have a smooth checkout journey.

Here is a quick spotlight on the top online payment methods in Australia that retailers should offer to shoppers:

Buy now, pay later (BNPL)

The most talked about topic in Australian retail right now is BNPL, a digital service that allows shoppers to buy a product online (or in store) immediately and pay the purchase in instalments. This online payment method particularly appeals to the 18-39 year old demographic, as there are low barriers to entry and they are able to receive the product without full payment upfront. With less friction in the buying process, retailers are likely to see higher conversion with Australian shoppers if this method is offered.

Risk to the merchant is also low as most Australian BNPL services assume fraud risk on a retailer’s behalf.

Buy Now Pay Later is increasingly popular for ESW clients in Australia, doubling its ecommerce checkout reach in one year.


For many Australians who are used to shopping in store, the thought of paying online through an unfamiliar payment provider can be daunting. Consumers want to see brands they trust in the final step of the checkout, therefore offering POLi to Australian shoppers is crucial.

POLi is owned by Australia Post, Australia’s national postal carrier, and facilitates payment to a brand via the shopper’s internet banking. When they select POLi as their payment option, the shopper selects their bank from a list and enters their internet banking login details securely.

Although this may add an additional step in the checkout for shoppers, they do not need to set up an account with POLi, and entering their details can be as fast as entering credit card details.

Unlike many other ecommerce markets, bank transfer payments are increasing – in 2020, 53% of all ecommerce transactions were made via credit card. Ewallets are increasing in popularity and estimated to reach 23% of all online payment methods by 2025.

Visa or MasterCard

Like many of the world’s online shoppers, the most popular online payment methods in Australia are debit or credit cards. As standard, retailers must offer all the latest Visa and Mastercard payment options, include digital wallet programs Visa Checkout and MasterPass.

One of the main downsides of providing payment with credit card is the ability for shoppers to claim a chargeback, which can sometimes be taken advantage of by scammers. However it is a necessary evil for all merchants, though one that can be minimised with fraud detection tools, improved customer service, and trackable delivery events


Australian online shoppers are fast catching up to the rest of the world when it comes to digital payments. Ewallets such as PayPal make up 17% of online payments in Australia, therefore are imperative to offer in the checkout.

As Australians start to use more alternative payments such as ewallets and bank transfers, your brand must ensure it can support Australian online shoppers’ preferred ways to pay.

Your brand should also start thinking about the exponential growth of mcommerce, and continue to invest in providing great online shopping experience by integrating popular payment methods into your Australian checkout to ensure a seamless process across all devices.

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