Return of tourism sparks further recovery of Australia's card payments market

Resumption of travel and tourism will help push card use.

Australia’s card payment market is expected to grow 8.6% in 2022 on the back of a forecasted revival in tourism and improved economic conditions, according to a report by data and analytics company GlobalData.

This extends the 10.3% rebound the market registered in 2021, after a lackluster 0.8% growth in 2020.

And with the economy now returning to normalcy, card payments are anticipated to increase further at a compound annual growth rate (CAGR) of 6.9% between 2022 to 2026 and reach $785.2b in 2026.

“The market growth plummeted during the pandemic due to reduced card spending in sectors like travel and accommodation. However, with the rise in consumer spending and travel restrictions being lifted, strong growth in card payment could be seen,” said Nikhil Reddy, payments senior analyst at GlobalData.

A key driver of the recovery would be the reopening of borders and the expected rise of tourism. The Australian government first lifted its stringent COVID-19 restrictions for its citizens in November 2021, allowing fully vaccinated Australians and permanent residents to travel freely to and from Australia.

In February, the government finally opened its borders to international travelers. This will further push economic activities and positively contribute to consumer spending and support card payments growth.