Types of payment methods for businesses in Australia

In 2025, payments in Australia look very different from a few years ago. The market value is USD 1.07 trillion^1, and about 90% of Australians use digital payment methods. This makes it clear that cash isn’t most people’s first choice anymore.

For businesses, this shift affects customer preferences. If your business supports the payment methods people actually use, more payments go through, fewer customers leave mid-checkout, and you can sell in more markets.

This guide explains what payment methods are, why they matter to businesses, the main types used in Australia, and how multi-currency accounts help with international payments.

Table of contents
What are payment methods? Benefits Popular online payment methods in AU Wise Business: Simplify receiving money across borders FAQs

What are payment methods?

Payment methods are the different ways a business lets customers pay. This includes cash, cards, PayID, Apple Pay, PayPal, bank transfers, and other digital options that support secure and verified transactions.

Each payment method runs on its own system. Cards use card networks. PayID moves money through real-time bank transfers. Apple Pay and PayPal use tokenised details for more security. These systems decide how fast the money arrives, what the business pays in fees, and what security the method provides.

Because of these differences, businesses ideally identify the best payment method that is suitable for their operations while also balancing the popular option preferred by their customers.

Take two online stores. Store A accepts only cards. Store B accepts cards, Apple Pay, and PayPal. Customers feel more comfortable on Store B because they see the options they already use on other sites. As a result, more people complete their payments on Store B rather than leaving halfway.

In simple terms, payment methods provide a safe, direct way for funds to flow from the customer to the business.

Benefits of payment methods for businesses

Australia’s payment data shows clear differences in how people pay. Online³, cards make up 41% of payments, and digital wallets make up 31%. Bank transfers hold 10%, and smaller methods cover the rest. In stores⁴, debit cards lead at 39%, credit cards follow at 34%, digital wallets sit at 15%, and cash stands at 7%. No single method works for every customer or every channel.

These differences matter for businesses. A customer pays only when they see a method they trust. If the option is missing, the payment stops. Each method also has its own speed, cost, and level of security. These factors affect cash flow, cost control, and daily operations.

By offering payment methods that match customer preferences and suit your business needs, you can:

1. Improve payment completion and reduce drop-offs
Customers complete payments more often when they see a method they trust. If the option is missing, many leave before paying. By offering standard methods like cards, PayID, Apple Pay, or PayPal, a business keeps more customers in the checkout flow and increases successful payments.

2. Expand access to international buyers
Different countries prefer different payment methods. A method that works well in Australia may not work in another market. When a business supports regional options, international customers pay with less effort. This helps the business enter new markets with fewer barriers.

3. Strengthen day-to-day cash flow
Each payment method settles at a different speed. PayID settles almost instantly. Cards settle in one or two days. BNPL providers follow their own schedule. By choosing methods with steady settlement times, a business plans its expenses better and avoids delays.

4. Control the cost of accepting payments

Each method comes with its own fee. Cards may include processing charges. Wallets often use similar pricing. Bank transfers and PayID may cost less. When a business understands these differences, it protects its margins and avoids extra costs.

5. Lower risk across different payment methods
Some methods offer better verification. Mobile wallets use biometrics. Bank transfers rely on bank-level checks. These features lower the chance of fraud or disputes. A business chooses methods that match its risk level and transaction type.

6. Support varied transaction needs
Different types of payments need different setups. Subscriptions, large invoices, and international transfers do not use the same method. More payment options help a business handle each case without adding extra steps for the customer.

7. Serve different customer preferences
Customers use different ways to pay. Some use debit cards. Others rely on mobile wallets. Some trust PayID or PayPal. When a business offers several options, more customers feel comfortable paying.

8. Reduce manual effort in payment handling
Popular payment methods reduce confusion and delays. The business deals with fewer errors and spends less time on manual tasks.

Popular online payment methods in Australia

Businesses use several payment methods to accept money from customers. Each method works on its own system and suits different types of transactions. Let us look at some of the most common payment methods used in Australia:

Payment Method	What it offers	Where it fits best	Typical cost
Credit & Debit Cards	Accepts Visa, Mastercard, and EFTPOS. Fast authorisation, consumer protection, and recurring billing support.	Most online stores, subscriptions, and general retail.	~0.5% for Debit and ~0.9% for Credit cards5.
Digital Wallets*(Apple/Google Pay, PayPal)*	Stored details for one-click checkout. High security via biometrics (FaceID). Optimized for mobile.	Mobile-heavy traffic, repeat customers, and speed-focused users.	Varies by card. PayPal charges ~2.6% + 30c AUD6.
Buy Now, Pay Later*(Afterpay, Zip, Klarna)*	Customers pay in installments while merchants get paid upfront. Increases cart value and affordability.	Fashion, retail, electronics, and impulse-driven businesses.	Varies by provider; often ~4–6% per transaction7.
Bank Transfers*(PayID / Real-time)*	Direct bank-to-bank transfer. Fast settlement, minimal failed charges, and clear payer details.	Service businesses, B2B invoices, and high-value transactions.	Typically low-fee or no-fee depending on the bank.
Multi-currency*(Wise Business)*	Holds multiple currencies so customers pay locally. Avoids forced FX conversion and delays.	Exporters, global SaaS, freelancers, and international sellers.	Mid-market FX rate (no markup) + small transfer fee.

*Cost info is indicative. Always check current pricing with your chosen provider.

Credit and debit cards

Cards are one of the most common ways to pay. Credit cards draw on a credit line, while debit cards withdraw funds directly from the customer’s bank account. They suit online shopping, in-store payments, recurring billing, and subscriptions. Cards offer wide acceptance and strong customer protection.

Digital wallets

Digital wallets store a customer’s card or bank details in a secure format. Apple Pay, Google Pay, and PayPal are popular examples. They allow quick checkout and reduce the need to type card numbers. Device-level security, such as biometrics, lowers fraud risk.

Bank transfers

Bank transfers move money directly from the customer’s bank to the business. In Australia, this includes PayID and standard transfers. PayID offers near-instant settlement and clear payer details. This method suits invoices, B2B payments, and high-value transactions. It usually comes with lower fees.

Alternative payment methods: Multi-currency accounts

A multi-currency account lets a business receive and hold money in several currencies without forced conversion. Customers pay in their local currency, and the business receives it directly.

A provider like Wise Business supports this by giving local account details in multiple countries. International customers pay as if they are sending money domestically. This reduces delays, avoids hidden conversion fees, and helps the business operate smoothly across borders.

Direct debit

Direct debit allows a business to withdraw funds from a customer’s account with permission. It suits recurring payments such as subscriptions, utilities, memberships, and rent. It removes the need for customers to pay manually every cycle.

Real-time payments (PayTo)

PayTo is a newer system under Australia’s NPP. It allows fast, approved payments directly from a bank account. Businesses use PayTo for subscriptions, bill payments, and variable recurring payments because it gives instant confirmation and fewer failed charges.

Buy Now, Pay Later (BNPL)

BNPL splits a purchase into instalments. Customers pay the provider over time, while the business receives the full amount upfront. BNPL suits higher-value retail purchases and younger buyers who avoid credit cards.

Prepaid cards, gift cards & vouchers

Prepaid cards come with a fixed balance loaded by the customer. They work online and in stores. They suit customers who want more control over spending or prefer not to use a bank card.

Businesses offer gift cards or digital vouchers that customers redeem as payment. These work well for retail, food, beauty, and service-based businesses. They also bring in new customers.

Cash

Cash still appears in some in-store transactions. It suits small purchases and customers who prefer offline payment. But it requires manual handling, storage, and reconciliation.

Cheques

Cheques are less common now but still appear in some business, insurance, and government payments. They settle slowly and need physical processing, so many businesses reduce cheque acceptance.

Cryptocurrency

Some businesses accept crypto through payment processors. This is an emerging method and suits niche markets. Crypto payments settle through blockchain networks and require conversion to local currency for accounting.

Wise Business: Simplify receiving money from overseas

Expanding a business globally opens up exciting opportunities, but also new challenges like receiving payments across borders. Hidden foreign transaction fees and hefty currency conversions involved with international payments can eat into your profits and time.

Wise Business serves as a cost-effective solution where you can receive money from around the world at the speed and price of local payments.

Transform the way you receive payments with Wise Business:

• One-time fee of 65 AUD for local account details in 8+ currencies, including AUD, NZD, USD, and more—no recurring fees
• One account to hold, send, and convert money with no hidden fees or exchange rate markups
• Create and send professional invoices directly to your customers through Wise Business
• Create payment links to request money in specific currencies
• Seamlessly receive payments from customers, online sales, or PSPs like Stripe and Amazon.
• Wise is safe and secure - Trusted by 13 million people and counting

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

--

FAQs

1. Which is the safest payment method for international transactions?
Bank transfers and multi-currency accounts are the safest. Digital wallets with strong authentication, like Apple Pay or PayPal, also offer good protection.

2. What are the most common payment methods used for ecommerce businesses?
Cards, digital wallets, PayID, and BNPL are the most common options for ecommerce.

3. How long does it take for money from a sale to reach my bank account?
PayID arrives almost instantly. Card payments take one to two business days. BNPL and some wallets may take a bit longer.

---

Sources:

1. Market value
2. Digital payment usage
3. Online payment stats
4. In-store
5. Credit/Debit fee
6. Digital wallet
7. BNPL