Australia Fintech Market - Growth, Trends, Covid-19 Impact and Forecasts (2021-2026)

The Australia Fintech Market is Segmented by Service Proposition (Money Transfer and Payments, Savings and Investments, Digital Lending & Lending Marketplaces, Online Insurance & Insurance Marketplaces, Others). The report offers Market size and forecasts for Australia Fintech Market in terms of transaction volume and/or revenue(USD Million).

Market Snapshot

aus fin picture.png
Study Period: 2017-2026
Base Year: 2020
CAGR: <30 %

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Market Overview

COVID-19 has brought challenging times for fintechs, with less CAPEX and less OPEX available to fund growth. It has imoacted Australian Fintech Market, Fintech Industry, Financial transaction, Technology Industry at high pace because of less trransaction at the very beginning of the lockdown imposed all over the country and foreseas. However, the crisis induced by coronavirus also creates a great opportunity to reshape and advance focus on fintech innovation and expansion as part of the post-COVID rebuild.
In 2019, 42% of fintechs reported improved relationships with banks and financial institutions; but in 2021 only 17% of fintechs feel the same way. Fintechs believe this moment of crisis will drive a step-change in consumer digital adoption and have adapted quickly to grasp new opportunities. This has resulted in a significant increase in consumer digital payments and transactions and the rise of the “buy now pay later” sector, which has expanded at pace, both here and overseas. Projection is seeming to be the Fintech as an industry that will lead Australia out of the COVID crisis – generating the jobs and investment the country needs for a swift economic recovery.
For 72% of respondents, capital raising efforts were negatively impacted by COVID, with 15% reporting no impact and 13% reporting a positive outcome. Interestingly, this impact was felt almost uniformly across pre-launch, post revenue and post profit fintechs. However, while equity funding was tough, investment from the Super area proved more resilient.

With over 800 fintech companies based in all Australian State and Territory capitals, Australia has one of the world’s most exciting and dynamic fintech industries. Australia’s payments regulation into the digital age, including a new regulatory class for Stored Value Facilities and a system-wide review; and building on our collaboration with key partner nations, including the UK and Singapore has made the Australian Fintech Industry grow with very high pace.

2020 has been a bumper year for Australia’s fintech startup eco-system, with more than 100 fintechs added since September 2019. It shows a total of 733 currently active fintechs, up from 629 when the landscape was last released in September 2019. An increase in the number of fintechs within the lending category supported by new players in both consumer and SME lending sub-sectors, as well as an increase in Buy-Now-Pay-Later providers. Growth in blockchain and cryptocurrency-associated fintechs matches the general support and interest in the technology asset class across 2020. The evolution of the neobank sector across Australia, even though a number of neobanks have been impacted by delays to APRA’s licensing process. Insurtech maintaining momentum on the back of impressive growth in 2019

Scope of the Report

The Australia Fintech are one of the fastest growing Fintech Industry as the businesses and people are more preferring the digitized manner of choosing the financial product for their investmenst evaluation and payments. A complete background analysis of the Australia Fintech Market, which includes an assessment of the economy, market overview, market size estimation for key segments, and emerging trends in the market, market dynamics, and key company profiles are covered in the report. The Australia Fintech Market is Segmented by Service Proposition (Money Transfer and Payments, Savings and Investments, Digital Lending & Lending Marketplaces, Online Insurance & Insurance Marketplaces, Others). The report offers Market size and forecasts for Australia Fintech Market in terms of transaction volume and/or revenue(USD Million).

By Service proposition
Money Transfer and Payments
Savings and Investments
Digital Lending & Lending Marketplaces
Online Insurance & Insurance Marketplaces
Others

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Key Market Trends

Digital ID Framework Witnessing Growth in Australia Fintech Market

Fintechs are highly supportive of Australia adopting a Digital ID framework, similar to those already being implemented in Asia and Europe. Almost three in five (59%) of Census respondents believe a Digital ID would deliver cost savings, mostly in customer onboarding, to their organisation. Digital ID is an important step to enable fintech and consumer data right adoption, drive payments innovation and support the rapid digitisation of businesses occurring due to COVID-19. Current stumbling blocks are the need to agree on a Digital ID framework and build consumer confidence about identity privacy and control.
Asked about their ideas for the digital framework model, 64% see it working as a public and private model, also only private and only pub;lic responses are recorded.

Australia Fintech Market

Blockchain/ Cryptocurrency Witnessing Growth in Australia Fintech Market

Australia being home to the Blockchains serve as New Fintech Unit in Australia and also has introduced its new digital identity solution that will serve as a standalone Fintech division.. The ibcreasing investmensts in the c ryptocurrency is witnessing the average Industry growth of 88.2% projecting the growth in Fintech Market of Australia through out the Forecast period.

Australia Fintech Market

Competitive Landscape

The Australia Fintech Market is highly competitive and fragmanted as Australia's fast-growing, yet fragmented, digital payment landscape has started witnessing the first signs of market consolidation. As a five-fold increase in the number of fintech companies in just five years, the market in Australia also features a diverse range of startups entering many fintech subsectors across the country. Australia is currently home to more than 800 FinTech startups that cater to numerous clients and cover a broad range of services such as digital payments, alternative finance, wealth management and blockchain, among others. The common services offered by such e-wallet or payment platforms include transfer money, pay for online transactions, like bill paying and utility bills, and point-of-sale transactions through wireless transactions from mobile, food delivery, ride hailing, etc.​ Australia groups such as Paytron, Airwaleex, Zeller, many more have been focusing on innovating FinTech industry and leading the Australia Fintech Market to the new heights.

Recent Developments

  • In July' 2021, Australia’s Open Banking scheme has reached its next milestone, with all banks and credit unions now expected to share basic consumer data with individuals and registered data holders. In 2020, Australian Government while broadly taking its lead from the UK’s policy approached to Open Banking, and expanded its early-stage scope. The CDR was created a broader data right, initially applicable to banking transaction account data, with subsequent phases to cover other types of FS, such as superannuation, as well as energy and telecommunications services.
  • In June'2021, Blockchain based Digital Identity Solution, Connect ID, from Australia’s eftpos Group to Serve as New Fintech UnitAustralia-based eftpos Group has introduced its new digital identity solution that will serve as a standalone Fintech division.The new initiative, called Connect ID and created with assistance from SecureKey, is currently live, with the stated goal of making it simpler for consumers in Australia to share, store and receive personal identity information in a digital environment.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXCEUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 A Brief on Internet And Smartphone penetration in Australia

    3. 4.3 Insights on Regulations And Industry Policies Impacting Fintech Market in Australia

    4. 4.4 Revenue And Funding Statistics Related to Fintech Landscape

    5. 4.5 Market Drivers

    6. 4.6 Market Restraints

    7. 4.7 Consumer Needs And Behaviour Analysis - From Fintech Perspective

    8. 4.8 Porter's Five Forces Analysis

    9. 4.9 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service proposition

      1. 5.1.1 Money Transfer and Payments

      2. 5.1.2 Savings and Investments

      3. 5.1.3 Digital Lending & Lending Marketplaces

      4. 5.1.4 Online Insurance & Insurance Marketplaces

      5. 5.1.5 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Competition Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Zeller

      2. 6.2.2 Paytron

      3. 6.2.3 mx51

      4. 6.2.4 Athena

      5. 6.2.5 DiviPay

      6. 6.2.6 AirWallex

      7. 6.2.7 Judo bank

      8. 6.2.8 Afterpay Touch

      9. 6.2.9 Sofi

      10. 6.2.10 Wise

      11. 6.2.11 Stripe*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. DISCLAIMER & ABOUT US

**Subject to Availability

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Frequently Asked Questions

The Australia Fintech Market market is studied from 2017 - 2026.

The Australia Fintech Market is growing at a CAGR of <30% over the next 5 years.

Airwallex, Zeller, mx51, Paytron, Athena are the major companies operating in Australia Fintech Market.

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