Of the four leading online payment platforms PayPal is the clear leader with 72.5% of Australians aware of the platform. This compares to just under a quarter, 23.6%, that are aware of Visa Checkout, and just under one-in-six aware of Western Union (16.4%) or masterpass (16.3%).
The COVID-19 pandemic has provided a huge boon to online retailers, and this has also driven the increased usage of online payment platforms such as PayPal. Now 47.3% of Australians have used PayPal in the last 12 months, up nearly 10% points from 37.8% in February 2020 just before the pandemic hit Australia – reversing the trend.
Usage of PayPal had been at 40.5% of Australians in January 2018 and gradually increasing before peaking at 42% in June 2018. From mid-2018 usage of PayPal had begun to gently decline as newer forms of payment such as buy-now-pay-later services gained an increasing share of the digital payment market.
Over three-quarters of Australians, 16.5 million (78.1%), are now aware of buy-now-pay-later services such as Afterpay, Zip, Latitude Pay and Humm. However, usage of these services is far lower with only 3.5 million Australians (16.6%) using a buy-now-pay-later service in the last 12 months.
To learn more about how Australians are using ‘buy-now-pay-later’ services please see our recent release on trends in that market: ‘$39 billion purchase of Afterpay highlights value of buy-now-pay-later services such as Zip, Humm and Latitude Pay’.
These new digital payment findings are from Roy Morgan Single Source, Australia’s leading consumer survey, derived from in-depth interviews with around 50,000 Australians annually.
Online payment platform usage trends (used in last 12 months): 2018-2021
Source: Roy Morgan Single Source, 12 month moving average, Avg. sample = 50,277. Base: Australians 14+.
Roy Morgan CEO Michele Levine says the COVID-19 pandemic has had many impacts throughout the economy and one of the most prominent is the increase in online retail sales – which has had a large positive impact for online payment platform PayPal: