Australia's Digital Payment Revolution: Why Fintech Stocks Are Poised to Soar

Australia's retail payments landscape is undergoing a seismic shift. Over the past three years, contactless payments and mobile wallets have surged in adoption, driven by consumer convenience, technological innovation, and robust regulatory frameworks. This transformation is not just a fleeting trend but a structural shift with profound implications for investors. For those attuned to the opportunities in fintech and payment infrastructure, Australia presents a compelling playground.

The Mobile Wallet Surge: A Catalyst for Change

The data paints a clear picture: mobile wallets are now mainstream. By June 2023, 35% of debit and credit card transactions were made via platforms like Apple Pay or Google Pay—a figure that soared to 44% by early 2025. Younger demographics have led this charge, with 64% of 18–29-year-olds using mobile payments in 2022, triple their usage in 2019. Even older generations, once hesitant, are warming to the technology: mobile wallet adoption among Australians aged 65+ jumped to 9% by 2022, up from nearly zero three years prior.

This momentum is fueled by integration with emerging technologies. By 2025, over 70% of businesses now use QR codes, which are increasingly tied to real-time payment systems like the New Payments Platform (NPP). The rise of QR codes has made transactions seamless, with 65% of consumers regularly scanning them—a trend that bodes well for companies enabling this infrastructure.

The Infrastructure Powerhouse: NPP and Open Banking

At the core of this revolution is the New Payments Platform (NPP), which processed 1.3 billion transactions in 2022/23, valued at $1.5 trillion. By 2025, real-time A2A (account-to-account) payments via the NPP are becoming mainstream, with 20 million registered PayIDs and tools like PayTo enabling one-click transactions. This infrastructure is not just a facilitator but a competitive advantage for Australian fintechs.

Open Banking regulations, under the Consumer Data Right (CDR), have further accelerated innovation. Platforms like Embedded Finance now allow payment systems to be integrated into non-financial apps, from ride-sharing to utilities. This integration reduces friction for consumers and opens doors for companies like Azupay and NAB, which offer direct bank-to-bank transactions without traditional card fees.

Challenges on the Horizon—and Why They're Manageable

The decline of cash poses risks for vulnerable groups, with 4.5% of adults still reliant on cash. Yet regulatory safeguards, such as the government's Strategic Plan for Australia's Payments System, aim to balance innovation with accessibility. Meanwhile, the Buy Now, Pay Later (BNPL) sector, which grew to $19 billion in 2022/23, faces regulatory headwinds. New rules under the National Consumer Credit Protection Act have slowed its growth, but this is a correction rather than a collapse.

Investment Opportunities: Where to Look Now

The data suggests a clear path for investors: bet on companies at the heart of the payment infrastructure.

1. NPP-Driven Fintechs:
2. Eftpos: A leader in QR code and contactless infrastructure, Eftpos has expanded its reach to 65% of businesses, with its QR network now a backbone of the ecosystem.

3. Azupay: A pioneer in “Pay by Bank” solutions, Azupay's integration with the NPP positions it to capture market share from traditional card networks.

4. Cross-Border Payment Innovators:

5. Wise (WISE): As cross-border spending by Australians soars—fueled by Asia-Pacific and North American retailers—companies like Wise, which reduced transfer fees to 0.5–1%, stand to benefit.

6. Airwallex (AWX): A key player in real-time foreign exchange, Airwallex's tools for SMEs and e-commerce businesses are critical as Australia's digital payments go global.

7. Real-Time Payment Infrastructure:

8. Commonwealth Bank (CBA) and National Australia Bank (NAB): Both have invested heavily in NPP integration and digital wallets. Their dominance in banking infrastructure gives them a structural advantage.

The Bottom Line: Ride the Wave

Australia's payment system is no longer catching up—it's leading. With mobile wallets and contactless payments now the default, and infrastructure like the NPP solidifying its role, the sector is primed for sustained growth. For investors, this means looking beyond traditional banks to fintechs and payment enablers.

While BNPL's slowdown and cash decline pose risks, they are manageable in a market where 44% of transactions are already mobile wallet-driven. The $50.72 billion projected 2025 ecommerce market and the 70% QR adoption rate among businesses signal a future where Australia's digital payment ecosystem becomes a global benchmark.

In this landscape, the winners will be those closest to the infrastructure. Investors would be wise to prioritize companies like Eftpos, Azupay, and Wise—players that are not just adapting to change but driving it. The digital payment revolution isn't coming to Australia—it's already here.