For Australian businesses, selecting the right payment methods is crucial. Accepting payment methods that meet your business needs and satisfy your customers' preferences enables you to:
Increase conversion: Ensuring that your product or service meets your customers' needs is not enough. Customers may be deterred from completing a purchase if their preferred payment method is not available. By providing a variety of payment methods that suit your customers' preferences, you'll be able to increase the likelihood of them completing a purchase.
Reach global customers: Accepting key local payment methods is important in ensuring that you sufficiently address your local customers' needs, but being able to accept global payment methods such as Visa, Mastercard, or AliPay, can help you to reach beyond your local market and to capture global spends.
Optimise your transaction costs: Different payment methods have different cost structures. In order to determine which payment methods are most relevant for your business, consider your business model and whether the payment methods you've selected are relevant for your customers.
This guide introduces you to various payment methods that can help to address your business needs and customer preferences, including the payment methods that KPay supports.
The New Payments Platform (NPP) has moved from a consumer novelty to a business necessity. Unlike traditional bank transfers (EFT) which can take 1–3 days, NPP-powered methods offer instant settlement at any time.
eftpos is Australia’s domestic debit card scheme. Unlike Visa or Mastercard, it is a local network that moves money directly from a customer's bank account to yours. Physical eftpos-only cards generally cannot be used for international websites or overseas travel.
However, this also means that traditionally, processing via the eftpos network is cheaper for merchants than using international credit networks.
It is also worth noting that eftpos is the only network that reliably supports cashing out at the register.
Australian debit cards are almost always "Dual-Network" cards. They feature a local eftpos logo on the back and a global Visa or Mastercard logo on the front.
Like eftpos, money is drawn directly from the customer's existing bank balance. However, because they are co-branded with Visa or Mastercard, they can be used for online shopping (Netflix, Amazon) and while traveling abroad.
When a customer taps" a debit card, the transaction can be processed via the global network or the local eftpos network.
Credit cards allow customers to pay using a line of credit provided by their bank, rather than their own immediate cash.
For merchants, this usually means a higher percentage fee to accept credit cards compared to debit cards or eftpos. On the other hand, customers are often motivated to use credit cards to earn rewards points or frequent flyer miles, which can lead to more spending, thus benefitting businesses.
Additionally, credit networks such as Visa, Mastercard, and AMEX, offer robust consumer protection, which means merchants must maintain high service standards to avoid disputes.
While cards remain the most frequent payment method, the cost structure varies significantly by scheme.
Australia remains a global hub for BNPL, with providers like Afterpay and Zip remaining popular among Gen Z and Millennial demographics.
While BNPL can increase average order value (AOV) by over 20% as customers tend to use BNPL for high-cost products or services, it is the most expensive method for merchants, with fees typically ranging from 3% to 6%.
Additionally, as of 2025, BNPL is regulated under the National Consumer Credit Act, requiring more stringent checks.
Beyond traditional card networks, Australian businesses are increasingly adopting modern digital tools to simplify complex transactions. Two of the most significant shifts in 2025 are the maturity of QR code ecosystems and the rise of sophisticated cross-border fintech solutions.
While QR codes first gained traction for digital menus, they have evolved into a comprehensive "order-and-pay" infrastructure. In the Australian hospitality and service sectors, they are now a primary tool for operational efficiency.
Cross-border optimisation focuses on bypassing the "correspondent banking" model by leveraging local payment rails and multi-currency technology. Instead of a transaction passing through multiple intermediary banks—each adding its own fees and delays—fintech platforms utilise domestic clearing systems to settle funds directly. This "like-for-like" settlement allows Australian firms to receive and hold international revenue, such as USD or EUR, in dedicated digital wallets. By avoiding forced, high-spread currency conversions typical of traditional banks, businesses can protect their margins and save up to 90% on transaction fees.
Additionally, this approach significantly accelerates liquidity through near-instant or T+1 settlement cycles, which is a major upgrade from the 3–5 days often seen with SWIFT transfers. Beyond speed, modern platforms provide a "single source of truth" for global operations by integrating real-time FX rates and automated reconciliation tools. This allows businesses to use their international balances to pay overseas suppliers directly in their own currency, effectively eliminating the "bank tax" on global trade and providing a more predictable, transparent cash flow for firms operating in an increasingly interconnected economy.
It's important to recognise which payment methods are prevalent not only in the Australia market, but also which payment methods are preferred by your global customers. Taking this into consideration, along with your business model and understanding the costs involved, will help you to make an informed decision on your optimal payment mix.
To simplify the process and maximise profitability in the current Australian market, merchants can follow a three-step audit:
KPay Terminal Pro offers a good mix of payment methods with features that also address other common business concerns:
Success in the Australian market now hinges on more than just accepting cards; it’s about choosing a system that converts every transaction into a strategic advantage. By auditing your current setup for speed, cost, and cross-border readiness, you can future-proof your financial operations.
To find out more about KPay Terminal Pro, contact our sales team today.
