How Australian businesses can adapt to modern digital payments

The payments landscape in Australia is evolving quickly. As technology advances, so do customers’ payment preferences. Evidence of this transformation is clear: cash accounted for only 13% of all payments in 2022, a staggering drop from 69% in 2007, according to the Reserve Bank of Australia (RBA) Consumer Behaviour Survey. This sharp decline confirms Australians have firmly embraced digital payments.

Masseh Haidary, Oceania CEO at Global Payments explains, “Australia’s payment landscape isn’t just evolving, the rate of change is accelerating. As digital-first expectations take hold, the shift away from cash is no longer a trend. It’s a permanent pivot. Businesses that lead this cashless movement will be the ones that embrace flexible, integrated payment systems - solutions that reduce friction, elevate customer experience and scale with demand. This is about more than keeping up, it’s about setting the pace for the next era of digital commerce.”

The decline of cash and the need for new efficiency

The preference for digital payments is overwhelming the traditional use of cash in Australia. This acceleration was notably fuelled by the COVID-19 pandemic, which cemented contactless transactions as the norm. GlobalData analysis shows that alternative methods, including mobile wallets and Buy Now, Pay Later (BNPL), now hold a 53% market share in Australia’s ecommerce sector in 2024.

For customers, carrying cash feels slow and unnecessary when quick purchases can be made with a card tap or smartphone. Consequently, ATM usage has plummeted as consumers increasingly rely on payment providers for frictionless transactions everywhere they shop. This behavioural shift towards efficiency over tradition demands that businesses focus on payment convenience.

Australian businesses that offer diverse digital payment options, such as Direct Debit, PayTo, digital wallet payments in person and BPAY, are best positioned to meet customer expectations, simplify payments and reduce friction during checkout.

The rise of mobile wallets and seamless experience

The increasing popularity of digital wallets and mobile payments is driven by a powerful trifecta: convenience, security and speed. The ability to pay with a quick tap or scan, without needing a physical card or cash, removes friction and makes the checkout experience enjoyable and efficient.

The RBA report confirms this trend, noting that digital wallet transactions now account for 35% of all card transactions. This is a clear indicator that consumers demand a mobile-first approach. Businesses that integrate these types of solutions, including mobile payments, Direct Debit, and recurring payments, gain a significant competitive advantage.

Jade McCarthy, Head of Client Services at Global Payments Oceania explains, “We see mobile and digital payments as more than just tech features – they’re a competitive advantage, and a bridge to a better customer experience. When someone can tap, scan, or subscribe to a service in seconds, that’s the convenience that sticks. We’ve especially seen this take off in membership and other subscription-based businesses, where smooth recurring payments lead to better customer retention and fewer awkward follow-ups. It’s tech doing what it should – making life easier for everyone.”

Major platforms like Apple Pay and Google Wallet have successfully integrated loyalty programs, offering further incentives and allowing businesses to enhance customer engagement through tailored offers delivered directly via mobile apps.

Integrating flexible finance: BNPL and embedded solutions

Buy Now, Pay Later (BNPL) services have redefined financial flexibility for consumers, allowing instant purchases to be paid off over manageable instalments. This gives customers better control over budgeting and personal cash flow.

Further blurring the lines between commerce and finance is embedded finance. This trend involves integrating financial services directly into non-financial platforms, allowing customers to complete transactions without ever leaving the business own environment.

The blend of BNPL and embedded finance creates a more confidence-inspiring shopping experience. Businesses that offer these flexible options meet the demand for choice and convenience, while seamlessly managing the entire transaction within their ecosystem.

Building trust through security and fraud prevention

As the volume of digital payments increases, so does the responsibility for security. Cybersecurity is a critical concern for Australian consumers, who prioritise fraud protection and data security. Maintaining customer trust requires businesses to ensure their payment providers are robustly secure.

“When we introduced the Merchant Trust Initiative (MTI), we knew it was going to be an important cybersecurity tool, but back then, a lot of businesses needed convincing. Fast forward to 2025 – after serious data breaches across major Australian sectors like superannuation, health insurance and telecommunications – our merchants are now seeking it out. They want to know their payments are safe and their customer data is secure. The goal is to provide that level of comfort for businesses without creating extra steps or friction for customers. That’s why we’re built a system that is secure by design, but still seamless for the customer. In our world, trust and convenience go hand in hand,” says Jade.

Businesses rely on partners to uphold PCI DSS compliance and implement modern fraud prevention strategies. The use of multi-factor authentication, AI-driven fraud detection, and tokenisation are vital tools in reducing risk and securing both business and customer data, and reducing their own compliance burden.

The path to a future-ready payment strategy

The future of payments in Australia will be shaped by continuous innovation, enhanced security and rapidly increasing consumer expectations. The Global Payments 2025 Commerce and Payment Trends Report highlights the importance of leveraging data insights from transactions to personalise customer experiences and optimise operations. Instant payment solutions, automation and world-class fraud prevention will be central to achieving long-term business success.

By investing in scalable, secure payment systems and focusing on providing a truly seamless experience, Australian businesses can exceed consumer expectations and gain a competitive edge. Adapting to these trends allows businesses to simplify payments, reduce admin and effectively improve cash flow while fostering strong customer retention.

“What we’re hearing from our customers is that the challenge isn’t choosing a payment option – it’s keeping up with how quickly expectations are changing. If you don’t have a digital payment system that adapts, you’re going to fall behind. Scalable payment solutions that enable you to build out payment options such as recurring billing, PayTo, and fully integrated solutions. At the end of the day, we’re here to remove friction and help businesses deliver an incredible customer experience. That’s what future-ready looks like for us,” says Jade.

Key takeaways

To succeed in the digital payments Australia ecosystem, businesses must be proactive:

• Offer diverse options: Ensure you accept modern methods like Direct Debit, PayTo, BPAY, and mobile wallets.
• Prioritise security: Partner with PCI DSS compliant solutions to protect data and build trust.
• Embrace integration: Prepare for embedded finance to create seamless, "stay-in-app" digital transactions.

To implement a scalable, secure, and integrated payment solution that will future-proof your business, contact the experts at Ezidebit today.