Payment methods in Australia

PayPal is Australia's most popular third-party e-wallet, accepted by the vast majority of online merchants. It enables payment without sharing card details directly with merchants and supports one-click checkout. PayPal's "Pay in 4" BNPL option has also gained traction in Australia. Flow: User selects PayPal, a modal or redirect opens. User logs in, confirms funding source, reviews details, authorizes. Control returns to merchant with approved or declined status.

Zip is Australia's leading homegrown BNPL provider, offering interest-free instalment options for online and in-store purchases. It has expanded internationally to New Zealand and the United States, but retains a dominant position in its home market, competing directly with Klarna and Afterpay. Shoppers split purchases into weekly or fortnightly payments with no interest charged on most plans.

Australia's New Payments Platform (NPP) enables instant bank-to-bank transfers using a PayID (phone number, email, or ABN). Growing adoption in e-commerce as an alternative to card payment, particularly for higher-value transactions.

Digital wallet passes linked to credit or debit cards are widely used for both in-store contactless payments and online checkout. Australia has very high contactless payment penetration overall, and device-based wallets are a natural extension of that behaviour into e-commerce.

Afterpay (branded Clearpay in the UK) is one of Australia's most widely used BNPL services, enabling shoppers to split purchases into four fortnightly payments. Acquired by Block (formerly Square) in 2022, it is deeply integrated into Australian retail both online and in-store. It is particularly popular with fashion and lifestyle merchants.