Online shopping has become increasingly popular in Australia, with more and more people turning to the Internet to buy goods and services. Even while playing online games users can donate their money and enjoy the play to the fullest.

With this rise in online services, online payment methods have also become more important. In this piece, we’ll explore the most popular online payment methods in Australia and their pros and cons.

Buy Now Pay Later (BNPL)


Buy Now Pay Later (BNPL) services, such as Afterpay and Zip Pay, allow you to buy goods and pay for them over time, usually in instalments. You can use Afterpay for business to spread out the cost of large purchases or manage cash flow for small businesses.

Be sure to read the fine print before signing up for a BNPL program. Some companies may charge additional fees or interest if you’re late on your payments. BNPL payment methods have become increasingly popular in Australia, especially among younger consumers.

Pros Cons
Flexible financing options Limited spending power
Improved credit score Damage to credit history in case of payment delay
You can purchase the item right away, rather than waiting for approval from a credit card company or bank loan

Credit Cards & Debit Cards


Credit cards and debit cards are the most common online payment methods in Australia. They are widely accepted by merchants and offer a convenient way to make online purchases. However, they do come with some risks, such as the possibility of fraud or identity theft.

Pros Cons
Widely accepted Risk of fraud or identity theft
Rewards, such as cashback or points programs High-interest rates and other associated fees
Access to a line of credit

Digital Wallets/eWallets

Digital wallets or eWallets are becoming increasingly popular. They allow users to store their payment information in one place and make payments with just a few clicks.

They are often less expensive than traditional payment methods since users don’t have to pay for expensive credit cards or transaction fees. Some popular eWallets in Australia include Apple Pay, Google Wallet, and Samsung Pay.

Pros Cons
High security with encryption technology to protect user’s data Personal information can be accessed by the wallet provider or other parties
Can store multiple payment methods in one place Not all merchants accept digital wallets
Affordable to use

POLi Payments


POLi Payments is a secure online payment method that allows you to make payments directly from your bank account. It’s a popular payment method for online merchants in Australia, and it’s free to use.

Pros Cons
No registration or sign-up is required Not available for use with all banks and financial institutions
Fast, simple and secure way to make payments No buyer protection features
No credit card fees


PayPal is a popular online payment method that’s accepted by millions of merchants worldwide. Most businesses accept it, and you can also use it to pay for purchases on eBay. PayPal offers a secure way to make online payments without sharing your credit card or bank account information.

While using PayPal for transactions you should take into account that you may have to pay a fee when you receive money from someone. This is usually around 3%.

Pros Cons
One of the most secure payment methods PayPal can freeze payments if it suspects fraud or other illegal activities
PayPal offers buyer protection, meaning that you can get a refund if something goes wrong with your purchase It can take up to three business days for transfers to be completed
There are no setup fees or monthly charges

Apple Pay


Apple Pay is a digital wallet service offered by Apple. It allows you to store your credit card information on your iPhone or Apple Watch and make payments with just a tap. It’s a convenient and secure way to make online and in-store purchases.

Pros Cons
Fast and easy to use Not all retailers accept it yet
Advanced security features such as the Touch ID fingerprint recognition system It’s only available on Apple devices
You can use up to ten cards connected to your device

Future of Online Payment Processing for E-commerce in Australia


The future of online payment processing in Australia looks set to continue to evolve as technology advances. We can expect to see more mobile payment methods and digital wallets.

As the use of smartphones and other mobile devices continues to grow, we can also expect to see more merchants accepting mobile payments. Additionally, new technologies such as blockchain are being adopted by companies, making transactions faster and more secure.

At the same time, new regulations for online payments are being introduced to ensure consumer protection and data safety. This means that businesses must follow certain rules when processing online payments, such as obtaining customer consent before debiting their accounts.

As more businesses become aware of these regulations and comply with them, it is likely that more consumers will feel confident about making payments online.


There are a variety of online payment methods available to consumers in Australia, each with its own advantages and drawbacks. Credit and debit cards remain the most popular payment methods, but digital wallets/eWallets, POLi Payments, PayPal, Buy Now Pay Later, and Apple Pay are gaining popularity as well.

When choosing an online payment method, it’s important to consider factors such as security, convenience, fees, and acceptance by merchants. Understanding the terms and conditions of the payment method is also crucial to avoid any unexpected charges or fees.

By understanding the pros and cons of each payment method and choosing the one that best suits your needs, you can enjoy a hassle-free online shopping experience.