20161122-Worldpay-SHOPPING_BEHAVIOR_IN_AUSTRALIA_THE_MILLENNIAL_BABY_BOOMER_VIEW_20页_7mb

Australian Payment Preferences Summary

Core Content Overview

This document explores the payment preferences of Australian shoppers, focusing on two key demographics: Millennials (18-24 years old) and Baby Boomers (51-69 years old). It provides insights into their online shopping behavior, payment methods, and the factors influencing their choices. The report also offers targeting strategies for businesses aiming to engage these groups effectively.

Market Snapshot

• Population: Australia has a total population of 23 million, ranked 52nd globally.
• Economic Context:
  • GDP in 2014: $1 trillion.
  • Ranked 12th in the world economy.
  • Ranked 13th in ease of doing business.
  • GDP growth rate: +2.5%.
• Internet Usage:
  • Total internet users: 84.6 per 100 people.
  • Mobile phone subscriptions: 131 per 100 people.
  • Fixed broadband subscriptions: 25.76 per 100 people.
• Financial Engagement:
  • 90% of Australians have a bank account.
  • 90% have a debit card.
  • High rates of borrowing and financial activity.

Shopper Buying Trends

Millennials (18-24 years old)

• Online Shopping Behavior:
  • Most active online shoppers in Australia.
  • 56% shop monthly, higher than the global average of 49%.
  • Prefer mobile over tablet for shopping and payments.
• Payment Preferences:
  • Debit card and PayPal are the most preferred.
  • Only 10% use credit cards, significantly below the global average of 37%.
  • 39% use PayPal, with a higher percentage of women (41%) than men (34%).
  • 50% of millennials will switch to a competitor if their preferred payment method is not available.
• Key Motivations:
  • Mobile convenience and ease of use.
  • Desire for simple and quick payment options.
  • 25% of millennials abandon purchases if payment options are not clear or convenient.

Baby Boomers (51-69 years old)

• Online Shopping Behavior:
  • Shop monthly or quarterly, spending an average of £51-£100 per transaction.
  • Spend more per purchase than millennials.
  • Predominantly buy clothing, electronics, and groceries.
• Payment Preferences:
  • Use card-based payments (debit and credit) more than other age groups.
  • 53% prefer PayPal for alternative payments.
  • 23% use BPay, and 14% use bank transfer.
  • 43% are more likely to use credit when spending £51 or more.
• Key Motivations:
  • Preference for trusted and familiar payment methods.
  • Women prioritize ease of use, while men focus on rewards and benefits.
  • 36% of women are more likely to abandon a purchase if their preferred payment method is not available.

Top Tips for Targeting

For Millennials

• Optimize for mobile: Ensure mobile-first design and functionality.
• Simplify checkout: Offer a quick and easy user experience.
• Prioritize debit card and PayPal: Make these options visible and optimized for seamless checkout.

For Baby Boomers

• Implement loyalty programs: Cashback or rewards can encourage repeat purchases.
• Enhance tablet engagement: Focus on tablet optimization as they drive tablet usage.
• Offer trusted payment methods: Include PayPal and BPay, which are well-known and preferred.

Beyond the Checkout

• Checkout Experience:
  • The checkout experience is critical in meeting shopper expectations.
  • 1 in 3 shoppers in Australia would abandon a purchase if they have to re-enter full details after a payment error.
  • 46% of shoppers are more likely to buy if they can see their preferred payment logo on the homepage.
  • Over 50% are more likely to purchase if they see digital certificate and authentication logos for security.
• Payment Method Visibility:
  • Payment options must be clearly visible and accessible.
  • Businesses should consider the preferred payment methods of each demographic to improve conversion rates.

Key Insights

• Millennials are highly mobile-oriented and prefer debit cards and PayPal for quick, easy transactions.
• Baby Boomers are more likely to use credit cards and tablet devices, and they value security and trust in payment methods.
• The checkout experience is a crucial factor in purchase decisions, especially for millennials.
• Alternative payment methods like BPay and bank transfers are widely used in Australia, particularly by millennials.
• Payment method visibility and user experience are key to retaining customers and reducing cart abandonment.

Find Out More

• Explore the interactive report for detailed regional shopper behavior insights.
• Use the tool to select demographic settings and generate personalized reports for different markets.