Skip to content
Open site navigation sidebar
Go to GoCardless homepage
LoginSign up
Go to GoCardless homepage
LoginSign up

Online Payment Methods in Australia

Written by

Last editedJan 20233 min read

Australian consumers spent a total of $62.3 billion in 2021 alone, with over 80% making at least one online purchase. This means that for small businesses, it’s more important than ever to offer a smooth online shopping experience – and that extends to the checkout page. There are several options when it comes to online payment methods in Australia, from payment gateways to digital wallets. Here’s a roundup of the most popular options.

Credit and debit card payments

Used to pay for nearly half of online purchases, credit and debit cards are certainly one of the most popular online payment methods in Australia. This may be due to their familiarity with consumers in comparison to some of the newer or more high-tech methods on this list. Security is also a selling point for card purchases, as cardholder details are fully encrypted during a transaction.

Credit card providers provide fraud protection, though this can come at a cost for merchants in the form of chargeback fees. It’s also important for merchants to ensure that their payment processing system is PCI DSS compliant. If you use any major Australian payment gateway, like PayPal, Square, or Stripe, this will be built in. Just be aware that you will need to pay higher per-transaction fees as a business when accepting card purchases in comparison to other methods.

Digital wallets

Digital or e-wallets are also some of the most popular online payment methods in Australia. This category includes services like Google Pay and Apple Pay, which can be used as payment methods on your ecommerce checkout page with an embedded link. If you take in-person payments as well, Near Field Communication (NFC) technology means that shoppers can pay for purchases with a tap of their phone.

Digital wallets can store the details of several credit and debit cards, as well as specialty store cards, memberships, and event tickets. They’re fully encrypted, and password protected, making them a secure option for both consumer and business. They were used to pay for 23% of Australian purchases online in 2019, but this number is expected to rise over the next few years. However, keep in mind that not all customers will be familiar and/or comfortable with this technology.

Buy Now Pay Later (BNPL)

Another type of payment that’s rapidly growing in popularity is Buy Now Pay Later (BNPL). Providers like Klarna and Afterpay allow customers to spread the cost of payments out over time with a series of low or no-interest instalments. There’s usually no fee involved, nor is there a hard credit check.

While it can be difficult for a business to provide its own BNPL processing, signing up for a service like Zip Co or those mentioned above takes the guesswork out of it. Like digital wallets, not all customers will be familiar with this option, but businesses with a Gen Z or millennial demographic may find this to be a very popular method.

POLi payments

Melbourne-based POLi Payments offers a quick and easy payment system for any consumers who have an account with a participating bank. This includes all major banks like Commonwealth Bank, ANZ Bank, NAB, Westpac, BankWest, Citibank, ING Direct, and Bendigo Bank. Merchants are paid through an online system, allowing customers to make a secure online banking transfer over the POLi website.


Used primarily to pay things like utility bills and council fees, the BPAY system isn’t as frequently used by businesses. It’s accessible to any customer with an Australian bank card, developed by the major Australian banks mentioned above. At present, there are over 45,000 institutions that support BPAY for bill payments. If your business provides a service of this nature, you might choose to accept this popular online payment method.

Direct debit payments

Like POLi, direct debit payments involve a direct bank transfer which makes them one of the most convenient online payment methods in Australia. They offer additional benefits to merchants, both in terms of flexibility and control. GoCardless is a direct debit provider that allows businesses to pull payments directly from a customer’s bank account. After the customer sets up an online mandate, you’ll be able to pull recurring payments to improve cash flow and reduce late or failed payments. It’s simple for small businesses to get started with GoCardless, thanks to hosted checkout flows and an easy-to-use dashboard for full visibility over incoming payments.

Ultimately, the best online payment methods in Australia will depend on the type of business you run, your core demographic, and your budget. In most cases, a combination of methods ensures you suit the broadest range of customers.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.

Over 70,000 businesses use GoCardless to get paid on time. Learn more about how you can improve payment processing at your business today.

Sign upLearn More

Try a better way to collect payments, with GoCardless. It's free to get started.

Try a better way to collect payments

Learn moreSign up