Market Overview
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 11.78 Billion |
| Market Size (2030) | USD 23.69 Billion |
| Growth Rate (2025 - 2030) | 15.00% CAGR |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Australia Fintech Market Analysis by Mordor Intelligence
Australia fintech market is valued at USD 11.78 billion in 2025 and is forecast to reach USD 23.69 billion by 2030, advancing at a 15% CAGR. Rapid uptake of real-time account-to-account payments, supportive data-sharing regulation, and a persistent small-business credit gap are nurturing sustained deal flow and product launches. Consolidation among payment specialists is accelerating as large incumbents acquire niche ventures to secure capability and scale. Consumer appetite for cash-free and mobile experiences remains the strongest demand signal, while government investment in open banking technology lowers the cost of entry for data-driven newcomers. Intensifying competition from global platforms is pushing local firms to prioritize embedded finance and cross-border functionality.
Key Report Takeaways
- By service proposition, digital payments led with a 44.1% share of the Australia fintech market in 2024, while neobanking is projected to expand at an 18.63% CAGR through 2030.
- By end-user, the business segment held 56.2% of the Australia fintech market share in 2024; retail is expected to advance at a 17.24% CAGR through 2030.
- By user interface, mobile applications accounted for 57.8% of the Australia fintech market size in 2024 and are projected to grow at a 19.61% CAGR to 2030.
Australia Fintech Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rapid uptake of real-time payments via NPP & PayTo | +2.5% | National; strongest in metropolitan areas | Medium term (2–4 years) |
| Phase-3 Consumer Data Right APIs enabling embedded finance | +1.8% | National; concentrated in Sydney and Melbourne | Medium term (2–4 years) |
| Persistent SME credit shortfall boosting alternative lending | +1.2% | National; higher in regional business centres | Short term (≤ 2 years) |
| Surge in BNPL volumes tied to regional e-commerce growth | +1.5% | Regional Australia | Short term (≤ 2 years) |
| Government push for cashless welfare via digital prepaid cards | +0.8% | National; higher in remote and Indigenous communities | Medium term (2–4 years) |
| Wealth migration to SMSFs catalysing robo-advisory uptake | +1.0% | National; higher-income demographics | Long term (≥ 4 years) |
Source: Mordor Intelligence
Rapid uptake of real-time payments
Monthly NPP volumes surpass 100 million, and one in three transfers now ride the network, creating a fertile market for payment-processing fintechs[1]Fintech Australia, “Annual Fintech Ecosystem Report 2024,” fintechaustralia.org.au. More than 90% of retail transaction accounts are PayTo-enabled, which is essential as legacy rails are scheduled for retirement by 2030. Lower settlement latency improves liquidity for merchants and lubricates embedded-finance models, supporting revenue expansion across the Australia fintech market.
Phase-3 Consumer Data Right APIs
Open banking call volumes have grown at a 30% compounded monthly rate since 2020, and the ecosystem now serves 226,000 consumers through 300,000 live data arrangements[2]Australian Competition and Consumer Commission, “Consumer Data Right Implementation Report 2024,” accc.gov.au. The federal budget allocates AUD 88.8 million to fortify CDR operations and cyber-resilience. Superior data quality—merchant descriptors appear in 52% of CDR feeds versus 31.7% in screen-scraped feeds—enables richer analytics and personalization, lifting customer engagement across the Australia fintech market.
Persistent SME credit shortfall
Bank risk appetites tightened through 2024, yet asset-finance requests climbed 7.8% as SMEs sought funding alternatives. Platforms such as Prospa and OnDeck leverage automated underwriting to address the USD 20 billion funding gap, unlocking new fee pools inside the Australia fintech market.
Surge in BNPL volumes
BNPL providers processed USD 19 billion in 2022/23, up 13%, with regional customers exhibiting the fastest uptake[3]Reserve Bank of Australia, “Consumer Payments Survey 2023,” rba.gov.au. Research shows BNPL usage lifts online spending by 6.42% over cards, driving merchant adoption. Afterpay alone linked 129,000 merchants to 3.5 million active users in 2023. Incremental volumes are widening the addressable revenue inside the Australia fintech market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| ASIC fee caps on BNPL providers | -1.2% | National; strongest on smaller BNPL firms | Short term (≤ 2 years) |
| Escalating cyber-incident insurance premiums | -0.9% | National; data-intensive segments | Medium term (2–4 years) |
| Rising cost of CDR Version 4 compliance | -0.7% | National; early-stage fintechs | Short term (≤ 2 years) |
| Venture-capital pull-back in late-stage rounds | -1.0% | National; concentrated in Sydney and Melbourne | Medium term (2–4 years) |
Source: Mordor Intelligence
ASIC fee caps on BNPL
Legislation that requires BNPL firms to hold credit licences by June 2025 compresses fee headroom and hikes compliance costs. Scale players can absorb the shift, yet smaller entrants may exit, trimming short-term growth in the Australia fintech market.
Escalating cyber-incident insurance premiums
Cyber claims represent 41% of fintech insurance cases, and premiums now account for up to 15% of operating costs. Average breach losses of USD 2.92 million intensify scrutiny, favoring well-capitalized platforms and nudging fragile firms toward partnership or acquisition, which moderates risk-adjusted expansion in the Australia fintech market.
Segment Analysis
By Service Proposition: Digital payments dominate while neobanking accelerates
Digital payments held 44.1% of the Australia fintech market size in 2024. Penetration of contactless wallets and PayTo mandates has put Australia alongside China in cash displacement. Merchant demand for unified commerce solutions and loyalty integration keeps transaction values climbing. Competitive intensity is high, yet incumbent banks still outsource many orchestration layers, giving specialists room to scale.
Neobanking revenue is smaller but is projected to widen at an 18.63% CAGR to 2030 as digital-only players secure restricted authorized deposit-taking licences. Product roadmaps now include budgeting tools and green loans, reinforcing customer stickiness. Profitability hinges on deposit spreads and fee income from partner ecosystems. Rising consumer trust in branchless banking will help the segment lift its share in the Australia fintech market.
Note: Segment shares of all individual segments available upon report purchase
By End-User: Businesses drive volume and growth
Businesses accounted for 56.2% of the Australia fintech market share in 2024. Pandemic-accelerated digitization forced SMEs to replace spreadsheet processes with API-based workflows. Supplier-initiated payments and instant payroll continue to expand use cases.[4]Fintech Australia, “Annual Fintech Ecosystem Report 2024,” fintechaustralia.org.au
The retail segment is expected to grow at 17.24% CAGR over the forecast period. More than 72% of Australians shop online and spend USD 2,287 per person each year. BNPL, micro-investing, and automated budgeting applications dominate app-store rankings. Embedded finance lets retailers monetize customer data by bundling savings and insurance products within loyalty apps, blurring end-user boundaries across the Australia fintech market.
By User Interface: Mobile applications rule the experience
Mobile applications captured 57.8% of the Australia fintech market size in 2024. Smartphone penetration exceeds 92%, and consumers make 35% of card purchases through mobile wallets. Biometric login and push-notification workflows deliver real-time financial control, keeping the average session length high.
Web interfaces remain necessary for heavy data tasks such as treasury management and tax reporting. Point-of-sale and IoT devices expand as retailers deploy smart terminals that auto-reconcile payouts. Voice-first interfaces and wearables are in pilot phase, signaling the next adoption frontier inside the Australia fintech market.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
New South Wales and Victoria together housed 80% of the nation’s fintech ventures in 2024, reflecting proximity to capital markets, regulators, and talent pools. Sydney benefits from the Australian Securities Exchange and the local presence of all major banks. Melbourne draws on a deep tech workforce plus government grants through the Victorian Innovation Hub, sustaining large clusters in payments and wealth-tech. Queensland centres such as Brisbane and the Gold Coast are cultivating regtech and insurtech niches, attracted by lower overheads and growing startup accelerators.
South Australia leverages the Lot Fourteen precinct in Adelaide to target defence-aligned fintech cybersecurity, broadening the regional footprint of the Australia fintech market. Improved fibre and 5G rollout now enable rural communities to adopt BNPL and mobile banking, eroding legacy access gaps. As a result, fintech penetration in outer regional areas climbed during 2024, adding tens of thousands of new users and reinforcing inclusive growth across the Australia fintech industry.
Competitive Landscape
The Australian fintech market shows moderate concentration. Payment specialists, who form the earliest cohort, now command scale benefits. Afterpay, Zip Co, and EFTPOS-backed Australian Payments Plus process a significant share of consumer outlays. Block’s takeover of Afterpay in 2022 illustrated the premium placed on domestic distribution channels by global players. Cross-border platform Airwallex partnered with ANZ in 2024 to embed multicurrency wallets within business accounts, highlighting demand for Banking-as-a-Service pipes.
Alternative lenders Prospa and Moula automate credit scoring with cloud-accounting feeds, easing the SME funding gap. Meanwhile, incumbents NAB and CBA launched their own BNPL lines to retain customers. Venture funding cooled in mid-2023 yet recovered late 2024 as open banking opportunities de-risked revenue paths. Strategic exits surged, with Banking Circle acquiring Australian Settlements Limited in January 2025 to bolster real-time clearing. Midsize players face a build-or-partner choice as compliance overheads climb and cyber insurance premiums squeeze margins, driving further consolidation inside the Australian fintech market.
Australia Fintech Industry Leaders
-
Afterpay (Block Inc.)
-
Airwallex
-
Zip Co
-
Tyro Payments
-
Prospa
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competitors?
Download PDF
Recent Industry Developments
- January 2025: Banking Circle announced the acquisition of Australian Settlements Limited, signaling increased consolidation in the payments infrastructure sector.
- December 2024: Kobble launched a new embedded finance platform in Australia, expanding the capabilities available to businesses integrating financial services into their offerings.
- October 2024: Banked acquired Australian fintech Waave and partnered with Chemist Warehouse to launch Pay by Bank solutions in early 2025.
- March 2024: Deputy reached unicorn status with a valuation above USD 1 billion, becoming Australia’s first tech unicorn since early 2022.
Australia Fintech Market Report Scope
The Australian fintech industry is one of the fastest-growing fintech industries, as businesses and individuals are increasingly preferring the digital manner of choosing financial products for their investment evaluation and payments. The report gives a full background analysis of the Australia Fintech Market, including an analysis of the economy, a market overview, market size estimates for key segments, new market trends, market dynamics, and profiles of key companies.
The Australia Fintech Market Is Segmented By Service Proposition (Money Transfer And Payments; Savings And Investments; Digital Lending And Lending Marketplaces; Online Insurance And Insurance Marketplaces; And Other Service Propositions). The Report Offers Market Size And Forecasts For The Australian Fintech Market In Terms Of Transaction Volume And/Or Revenue (USD).
| By Service Proposition | Digital Payments |
| Digital Lending and Financing | |
| Digital Investments | |
| Insurtech | |
| Neobanking | |
| By End-User | Retail |
| Businesses | |
| By User Interface | Mobile Applications |
| Web / Browser | |
| POS / IoT Devices |
By Service Proposition
| Digital Payments |
| Digital Lending and Financing |
| Digital Investments |
| Insurtech |
| Neobanking |
By End-User
| Retail |
| Businesses |
By User Interface
| Mobile Applications |
| Web / Browser |
| POS / IoT Devices |
Need A Different Region or Segment?
Customize Now
Key Questions Answered in the Report
What is the current size of the Australia fintech market?
The Australia fintech market size stands at USD 11.78 billion in 2025.
How fast is the market expected to grow?
The market is projected to expand to USD 23.69 billion by 2030, reflecting a 15% CAGR.
Which service proposition holds the largest share?
Digital payments lead with 44.1% of 2024 revenue, driven by contactless and mobile adoption.
Why are real-time payments important for growth?
Real-time rails such as NPP and PayTo improve liquidity, reduce fees, and open new embedded-finance use cases, adding an estimated +2.5% to the forecast CAGR.
How does regulation influence Australia’s fintech evolution?
Open banking APIs under the Consumer Data Right foster bank-fintech partnerships, while new BNPL license rules raise compliance costs yet enhance consumer protection.
What challenges could slow market expansion?
Escalating cyber-insurance premiums and tighter BNPL fee caps may absorb margins and limit smaller players’ ability to scale.
