CreditCardCompare.com.au study shows Australian credit card usage at an all-time high

By: Prodigy
09/17/2024, Sydney // PRODIGY: Feature Story //

A recent study conducted by the Australian credit card comparison website CreditCardCompare.com.au analysed New Reserve Bank of Australia data, revealing a dramatic shift in credit card habits. Australians now use their credit cards an average of 23.2 times per month, doubling the frequency observed a decade ago.

Credit Card Compare

Gareth Boyd, Head of Growth at CreditCardCompare.com.au, analysed the RBA figures. "This increase shows how integrated credit cards have become in daily life," Boyd states. "Australians now use their cards for routine purchases, not just major expenses."

The data indicates a clear trend: credit cards are no longer reserved for significant purchases or emergencies. Consumers now swipe for small everyday items just as often as for larger expenses.

While transaction frequency has increased sharply, the RBA data shows the average transaction value has decreased from $140 in 2013 to approximately $114 in 2024.

This trend towards more frequent, smaller purchases largely stems from widespread contactless payment adoption, making card use effortless for minor expenses like daily coffee runs.

Despite increased usage, Australians aren't accumulating more debt overall. RBA data shows total credit card debt has decreased significantly, dropping from its 2018 peak of $52 billion to $40.4 billion in 2024.

This suggests a more sophisticated approach to credit card use, with consumers likely paying off balances more quickly or using cards primarily for convenience rather than credit.

"Credit card rewards likely drive this change in spending patterns," Boyd explains. "Points lose value if you're charged interest monthly from unpaid balances."

The rise of Afterpay and other Buy Now, Pay Later (BNPL) services also impacts the credit landscape, especially among younger consumers. While these services often don't appear in traditional credit card statistics, they influence overall credit usage patterns.

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Media Contact

David Boyd

Credit Card Compare

media@creditcardcompare.com.au

https://www.creditcardcompare.com.au/




Source: 38 Digital Market News

Release ID: 1126822

Source published by Submit Press Release >> CreditCardCompare.com.au study shows Australian credit card usage at an all-time high


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