Australia Prepaid Card and Digital Wallet Business and Investment Opportunities Databook – Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend - Q1 2024 Update

According to PayNXT360, the prepaid card market (value terms) 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. Overall, PayNXT360 maintains a strong growth outlook for the Australian prepaid card market over the next three to four years.

Half of the 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 2018 to over A$93 billion in 2022. Over 15.3 million cards were linked to mobile wallets in 2022, representing a notable rise from 2018 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 in South Korea.

• 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. • In-depth understanding of prepaid card and digital wallet market dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 75+ market segments and sub-segments of prepaid payment instrument,Prepaid Card, Digital Wallet and Virtual Prepaid Card in Australia.

• Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Transaction Value, Transaction Volume, and Average Value Per Transaction.

• Develop market specific strategies: Identify growth segments and target specific opportunities to formulate your prepaid card and digital wallet strategy; assess market specific key trends, drivers and risks in the industry.

• Detailed analysis of market share by key players across key Prepaid Card Categories.

• Get insights into consumer attitude and behaviour: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through prepaid cards, virtual prepaid cards and digital wallets.

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

• Transaction Value Trend Analysis

• Transaction Volume Trend Analysis

• Average Value per Transaction

Australia Digital Wallet Market Size and Forecast

• Transaction Value Trend Analysis

• Transaction Volume Trend Analysis

• Average Value per Transaction

Australia Digital Wallet Market Size and Forecast by Key Segments

• Retail Shopping (Value, Volume, Avg. Value)

• Travel (Value, Volume, Avg. Value)

• Entertainment and Gaming (Value, Volume, Avg. Value)

• Restaurant (Value, Volume, Avg. Value)

• Recharge and Bill Payment (Value, Volume, Avg. Value)

Australia Digital Wallet Spend by Key Retail Categories

• Food and Grocery

• Health and Beauty Products

• Apparel and Foot Wear

• Books,Music and Video

• Consumer Electronics

• Pharmacy and Wellness

• Gas Stations

• Restaurants and Bars

• Toys, Kids and Baby Products

• Services

• Other Categories

Australia Prepaid Card Industry Market Attractiveness

• Load Value Trend Analysis

• Transaction Value Trend Analysis

• Transaction Volume Trend Analysis

• Average Value per Transaction

• Number of Cards

Market Share Analysis by Functional Attributes – Open Loop vs. Closed Loop

Australia Open Loop Prepaid Card Future Growth Dynamics

• Transaction Value Trend Analysis

• Transaction Volume Trend Analysis

• Average Value per Transaction

• Number of Cards

Australia Closed Loop Prepaid Card Future Growth Dynamics

• Transaction Value Trend Analysis

• Transaction Volume Trend Analysis

• Average Value per Transaction

• Number of Cards

Australia Prepaid Card Market Share by Key Players

•General Purpose Prepaid Cards

• Business and Administrative Expense Prepaid Cards

•Travel Forex Prepaid Cards

•Meal Prepaid Cards

Australia Prepaid Card Consumer Usage Trends

• By Age Group

• By Income Group

• By Gender

Australia Prepaid Card Spend by Key Retail Categories

• Food and Grocery

• Health and Beauty Products

• Apparel and Foot Wear

• Books,Music and Video

• Consumer Electronics

• Pharmacy and Wellness

• Gas Stations

• Restaurants and Bars

• Toys, Kids and Baby Products

• Services

• Other 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

• By Open Loop Gift Card

• By Closed Loop Gift Card

Gift Card Market Size and Forecast by Consumer Segments

• By Retail Consumer Segment

• By Corporate Consumer Segment

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

• By Open Loop Teen and Campus Prepaid Card

• By Closed Loop Teen and Campus Prepaid Card

Australia Business and Administrative Expense Prepaid Card Market Size and Forecast

Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment

• By Mid-Tier Business Segment

• By Enterprise Business Segment

• By Government Segment

Australia Payroll Prepaid Card Market Size and Forecast

Payroll Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment

• By Mid-Tier Business Segment

• By Enterprise Business Segment

• By Government Segment

Australia Meal Prepaid Card Market Size and Forecast

Meal Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment

• By Mid-Tier Business Segment

• By Enterprise Business Segment

• By Government Segment

Australia Travel Forex Prepaid Card Market Size and Forecast

Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments

• By Retail

• By Small Scale Business Segment

• By Mid-Tier Business Segment

• By Enterprise Business Segment

• By Government Segment

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

• Transaction Value Trend Analysis

• Transaction Volume Trend Analysis

• Average Value per Transaction

Australia Virtual Prepaid Card Market Size and Future Growth Dynamics by Key Categories

• General Purpose Prepaid Cards

• Gift Cards

• Entertainment and Gamind Prepaid Cards

• Teen and Campus Prepaid Cards

• Business and Administrative Expense Prepaid Cards

• Payroll Prepaid Cards

• Meal Prepaid Cards

• Travel Forex Prepaid Cards

• Transit and Trolls Prepaid Cards

• Social Security and Other Government Benefit Programs Prepaid Cards

• Fuel Prepaid Cards

• Utilities and Other Prepaid Cards