Over the past decade, smartphones have become the centrepiece of a global transformation of consumer payments, including in Australia and New Zealand.
At first, mobile devices were primarily used for browsing and researching purchases, while the actual transactions were often then completed on desktops. As smartphone adoption soared globally though, shoppers increasingly sought the ease and convenience of shopping wherever they were on the same device. Rapid advances in technology answered that call, and today, thanks to new user experience and payment capabilities, the mobile is the command centre for shopping.
As mobile technology has advanced, so has its role in e-commerce. According to Worldpay’s 2025 Global Payments Report, only 19 per cent of global e-commerce transaction value in 2014 was conducted via mobile. By last year, that figure had risen to 57 per cent and is set to reach 64 per cent by 2030. The future of commerce – at least for the foreseeable future – continues to be a mobile one.
E-commerce in Australia and New Zealand is similarly on the rise. In Australia, e-commerce is projected to grow steadily from $50 billion in 2024 to $73 billion by 2030, according to the GPR, and New Zealand’s market is expected to increase from $8 billion in 2024 to $11 billion in that time.
Closely linked to the dominance of mobile is the rise of digital wallets, particularly for e-commerce. In both Australia and New Zealand, digital wallets are now the dominant payment method online at 39 per cent and 29 per cent respectively – more popular than cards. Both countries are projected to see growth in digital wallet use for e-commerce transactions, with a steeper rise anticipated in New Zealand to 2030 (to 53 per cent compared to 51 per cent in Australia).
While card use in e-commerce has seemingly fallen precipitously – from 46 per cent to 19 per cent of transaction value in Australia between 2014 and 2024, and from 36 per cent to 26 per cent in New Zealand – cards are hardly down and out. In fact, the GPR reveals cards continue to be a major player through those same digital wallets. In New Zealand, more than two-thirds of consumers fund their digital wallets using debit (35 per cent) or credit (32 per cent) cards. In Australia, the number is even higher, with a full 80 per cent of surveyed consumers reporting using cards to fund their wallets – 42 per cent with debit cards and 28 per cent with credit cards.
Consumers now expect mobile-optimised websites and apps that facilitate quick and secure transactions. Speed and efficiency are paramount, with 96 per cent of shoppers considering delivery speed a crucial factor in their purchasing decisions, and 97 per cent prioritising free and fast shipping. Retailers are investing in technology that streamlines payment authorisation and order fulfilment to meet these demands.
Pinar Koygun, senior director for retail at Worldpay, underscored the importance of convenience in the retail sector:
“Need to stay home today? You can use augmented reality to try on that dress and pay in-app. Left your cards at home? You have them all in your digital wallet. Convenience really is the reigning retail king.”
While digital payments are on the rise, cash remains a vital payment method for some consumers. Starting January 1, next year, Australian businesses selling essential goods and services, such as groceries, medicines and fuel, will be required to accept cash payments unless exempted. This mandate aims to ensure inclusivity for the approximately 1.5 million Australians who still rely heavily on cash, particularly in regional areas.
Evolving consumer expectations mean retailers must adapt to stay competitive. As consumers increasingly favour digital wallets and mobile-optimised shopping experiences, retailers have the opportunity to build customer loyalty and retention by providing their customers with the payment methods they want. It also will be crucial for retailers to balance innovation with inclusivity, particularly in light of regulatory changes, in navigating this dynamic environment.
Get more insight into this digital evolution in Worldpay’s Global Payments Report, which tracks and analyses consumers’ changing payment behaviours in 40 key markets worldwide. Marking the 10th year of GPR, 2025’s edition focuses on the past, present and future of payments. More than 67,000 consumers were surveyed for the report to understand current trends and forecast upcoming ones in the payments landscape.
