Australia Fintech Market

Market Overview:

The Australia fintech market size reached USD 2.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 20.0 Billion by 2032, exhibiting a growth rate (CAGR) of 24.71% during 2024-2032. The market growth is primarily driven by the considerable rise in the adoption of digital payments, the increasing popularity of BNPL services among younger consumers seeking flexible payment options, and the growing adoption of RegTech solutions to automate compliance and fraud detection processes.

Fintech, also known as financial technology, refers to software that enhances or automates financial services and processes. It utilizes specialized software and algorithms to help business owners, companies, and consumers manage their finances using a computer or a smartphone. Fintech employ several technologies, including application programming interface (API), artificial intelligence (AI), blockchain, robotic process automation (RPA), and data analytics. It is widely adopted in the banking, financial services, and insurance (BFSI) sector for payments and fund transfers, loans, insurance, personal finance, wealth management, etc.

Australia Fintech Market Trends:

Considerable growth in Digital Payment

The Australia fintech market share is experiencing significant growth in digital payments as consumers move away from cash towards digital transactions. The rise in popularity is caused by more smartphones being used, improvements in mobile banking, and the increase in use of contactless payment options. As per Statista, the amount of mobile phone users in Australia has been consistently growing. By 2026, it is predicted that the number of smartphone users will increase from 19.9 million in 2017 to 23.6 million, a rise of 3.7 million. Government endorsement for open banking and digital wallets is continuing to speed up this change. Payment platforms are placing emphasis on improved security and smooth integration to meet consumer expectations for ease and efficiency. As the digital payment industry grows, conventional banks are embracing fintech solutions to remain competitive, resulting in new partnerships and advancements in the field.

Increasing Popularity of Buy Now, Pay Later (BNPL) Services

BNPL services are gaining immense popularity among the masses, changing how consumers manage their expenditure. Information gathered by the Reserve Bank of Australia from a cross-section of BNPL providers shows that BNPL transactions have shown ongoing growth in the past year. The volume of these transactions increased by about 13% in 2022/23, which was lower than the 37% growth seen in 2021/22. During 2022/23, BNPL transactions totaled approximately $19 billion, representing about 2% of all cards purchases in Australia. Fintech firms are taking advantage of the trend among younger generations to prefer flexible payment options, meeting this demand with interest-free instalment plans, which is creating a positive Australia fintech market outlook. Major retailers and e-commerce platforms are currently integrating BNPL into their payment options because of its increasing popularity. The regulatory environment is changing, emphasizing responsible lending practices to support sustainable growth in the BNPL sector. Due to the growing competition, providers are broadening their service offerings to retain customers through loyalty programs and personalized financial products.

Rise in the popularity of Regulatory Technology (RegTech) Advancements

There is growing emphasis on the adoption of regulatory technology (Regtech) solutions in order to streamline compliance processes and reduce operational costs. As per the Australia fintech market forecast, fintech firms across the country are developing artificial intelligence (AI) and machine learning (ML) tools to automate activities such as fraud detection, reporting, and risk management in response to stringent regulations within the financial industry. Regulatory technology (RegTech) to help companies comply with regulations more efficiently, are being increasingly embraced by both traditional firms and new businesses in an effort to improve transparency and regulatory adherence. As a result, the rising demand for efficient, scalable solutions is positioning RegTech as a key driver in the Australian fintech industry and is expected to continue.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the Australia fintech market report, along with forecasts at the country and regional level from 2024-2032. Our report has categorized the market based on deployment mode, technology, application and end-user.

Breakup by Deployment Mode:

• Cloud
• On-Premises
   

Breakup by Technology:

• Application Programming Interface (API)
• Artificial Intelligence (AI)
• Blockchain
• Data Analytics
• Robotic Process Automation (RPA)
• Others
   

Breakup by Application:

• Payments and Fund Transfer
• Loans
• Insurance and Personal Finance
• Wealth Management
• Others
   

Breakup by End-User:

• Banking
• Insurance
• Securities
• Others
   

Breakup by States:

• New South Wales
• Victoria
• Queensland
• Western Australia
• South Australia
• Tasmania
• Others

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the Australia fintech market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include:

• Afterpay
• Airwallex Pty Ltd
• Athena Mortgage Pty Ltd
• Divipay Pty Ltd
• Judo Bank Pty Ltd (Judo Capital Holdings)
• mx51 Pty Ltd
• PTRN Pty Ltd
• Stripe Inc.
• Wise Australia Pty Ltd
• Zeller Australia Pty Ltd.
   

Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Australia Fintech Market News:

• November 17, 2023: Indonesian payment gateway Faspay and Australian remittance company EzyRemit entered a collaboration, aiming to enhance cross-border transactions between Australia and Indonesia by developing a holistic financial ecosystem. The collaboration aims to combine Faspay's digital payment knowledge with EzyRemit's global money transfer skills for secure, cost-effective, and convenient transactions. The Memorandum of Understanding was signed at the Singapore Fintech Festival 2023 to formalize the agreement and streamline the global payment process.
• August 28, 2023: Banking Circle Group introduced BC Payments, its licensed subsidiary in Australia, to assist fintechs in their global expansion efforts. BC Payments seeks to offer worldwide payment solutions to Australian fintech companies, payment companies, and banks to facilitate growth both domestically and internationally. BC Payments aims to reduce expenses and accelerate international payments for Australian fintechs by utilizing Banking Circle Group's infrastructure.

Australia Fintech Market Report Scope:

Key Questions Answered in This Report:

• What is the market value of Australia fintech market? 
• What is the future prospect of Australia fintech market?
• What has been the impact of COVID-19 on the Australia fintech market?
• What are the key regional markets?
• What is the breakup of the market based on the deployment mode?
• What is the breakup of the market based on the technology?
• What is the breakup of the market based on the application?
• What is the breakup of the market based on the end-user?
• What are the various stages in the value chain of the industry?
• What are the key driving factors and challenges in the industry?
• What is the structure of the Australia fintech market and who are the key players?
• What is the degree of competition in the industry?