Local Payment Methods: Top Australian Banks You Should Know for Your Online Payment Gateway

Australia’s payments has undergone a significant transformation in recent years, no less because of the shift towards digitisation and the adoption of internet technologies by its citizens.

As a developed nation, it pays dividends for your eCommerce business if you are aware of consumer behaviours of this highly digitised nation. The banks of Australia have also had a hand to play in ensuring that their customers are served well in terms of providing a wide variety of payment services.

But before we dive into the list of top banks to look out for, it helps to know more about Australia’s payment landscape first.

Banking & Payments Landscape in Australia

According to the Reserve Bank of Australia, payments are increasingly being made electronically where in 2021/22, Australians made around 650 electronic transactions per person on average, compared to 300 10 years ago¹. This trend towards digital payments is further exacerbated by the COVID-19 pandemic, where social distancing and health concerns have made the average Australian adopt electronic payment methods in lieu of face-to-face transactions.

Cash and cheque payments have been hit the hardest in terms of losing its usage, and cash withdrawals have also plummeted from 760.6 million AUD in 2014 to 394.7 million AUD in 2021 - nearly half in reduced volumes - in favour of digital payment methods².

With these trends in mind, the country’s top banks have not let these behaviours fall off their radar either. Many of Australia's banks have been investing heavily in digital infrastructure and innovative technologies like the New Payments Platform to keep pace with this rapidly changing landscape.

Top Banks in Australia by Total Assets

1. Commonwealth Bank of Australia
2. ANZ Banking Group
3. Westpac Banking Corporation
4. National Australia Bank
5. Macquarie Bank Limited
6. Suncorp Bank
7. Bank of Queensland
8. Bendigo and Adelaide Bank
9. ING
10. HSBC

The Big Four of Australian Banking

When it comes to Australia’s banking industry, the big four refers to the Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank, and ANZ Banking Group. The Australian government introduced a policy called the Four Pillars Policy in 1990. In essence, the policy prevents these four entities from merging and acquiring each other to stop monopolies from forming.

Still, these four banks’ total assets are miles ahead of any of the other major banks in Australia at the moment. The smallest of the four in 2021, National Australia Bank, held 925 billion AUD in assets while Macquarie Bank held 399.2 billion AUD in 2022 - a staggering difference of nearly 600 billion AUD despite Macquarie having closed the gap between itself and the big four players in terms of market capitalization in recent years⁴.

Commonwealth Bank of Australia and its Digital Payment Methods

Founded in 1911, Commonwealth Bank or Commbank is the largest bank in Australia by total assets and is headquartered in Sydney. Forming one of the big four banks of Australia, the bank offers a wide range of products and services, including personal banking, business banking, wealth management, and more. It currently has 1.09 trillion AUD in total assets as of 2021.

In terms of its electronic payment methods offered, Commonwealth Bank of Australia provides:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• PayID integration (NPP)
• Mobile wallets, including wearables

Most third-party international payment gateways should be able to support online bank redirects and card payments for eCommerce transactions. In light of localising to the Australian market, some payment gateways, like Tazapay, have also opted to include the New Payments Platform’s PayID system to accept payments, making it easier for the Australian buyer.

ANZ Banking Group and its Digital Payment Methods

Following closely behind Commbank, ANZ Banking Group was founded in 1951 and forms another one of the big four banks in Australia. ANZ has 1.09 trillion AUD in total assets as of 2022, and is considered the largest bank in New Zealand.

Among its offerings, account holders of ANZ can use the following digital payment methods:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• NPP using PayID or Osko
• Mobile wallets, including wearables

Westpac Banking Corporation and its Digital Payment Methods

Westpac is also one of the big four banks in Australia, and was originally founded as the Bank of New South Wales in 1817. This makes Westpac the oldest and most established bank of the big four. According to Statista, Westpac currently has 935 billion AUD in total assets in 2021.

This big four bank provides the following digital payment methods to its banking customers:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• PayID integration (NPP)
• BPay

National Australia Bank

Founded in 1982, National Australia Bank has 866 billion AUD in total assets as of 2020 and is headquartered in Melbourne. Despite being the youngest of the 4, it has served over 9 million customers across Australia, New Zealand, and Asia.

In terms of payment methods, National Australia Bank provides the following digital services:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• PayID integration (NPP)
• Mobile wallets, including wearables

Macquarie Bank Limited

Headquartered in Sydney, Macquarie bank was founded in 1969 and has become a multinational powerhouse with a significant presence in Asia. According to its 2022 annual report, Macquarie has total assets worth 399 billion AUD.

Macquarie enables its users to pay using the following electronic payment methods:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• PayID integration (NPP)
• BPay

Suncorp Bank

As a subsidiary of an insurance company Suncorp Group, Suncorp Bank also hits the top 10 in terms of its total assets in the banking market. As of 2021, the entity has total assets of 106 billion AUD. The bank offers a wide range of products and services, including personal banking, business banking, investment, and insurance.

Suncorp Bank users are able to make payments with the following electronic payment methods:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• NPP using PayID or Osko
• BPay

Bank of Queensland

Founded in 1874, the Bank of Queensland (BOQ) is one of the oldest banks in Australia, being founded in the 19th century like Westpac. The bank is a leading regional bank in Australia, with its headquarters stationed in Brisbane, Queensland. As of 2021, BOQ has total assets worth 91.4 billion AUD.

Account holders of BOQ can make digital payments using these methods:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• PayID integration (NPP)
• BPay

Bendigo and Adelaide Bank

Like the Bank of Queensland, Bendigo and Adelaide Bank is also a regional bank in Australia that was founded in 1858. Per its namesake, the bank is based in Bendigo, Victoria, and offers a wide range of products and services, including personal banking, business banking, wealth management, and more. As of 2019, it has a total asset of 73 billion AUD.

These digital payment methods are available for Bendigo and Adelaide Bank users:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• NPP using PayID or Osko
• BPay

ING Australia Bank

ING Bank is a Dutch multinational banking and financial services corporation, which has been operating in Australia since 1999. As of its Annual Report in 2021, ING Group has 934 billion EUR in total assets but its Australian subsidy has 73 billion AUD.

ING Australia offers the following digital payment methods for its account holders:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• NPP using PayID or Osko

HSBC Australia

As a branch of the British multinational banking group, HSBC Australia also has a significant presence in the country. The bank branch reported a total of 50 billion AUD in total assets as of 2021.

In terms of digital payment methods, HSBC Australia users can enjoy paying via:

• Internet & mobile banking
• Card, credit & debit
• Bank transfers
• NPP using PayID
• BPay

Now that you know which banks Aussies prefer to use, you’re better equipped to localise your presence within the market. Make your business expansion plans easier by having all of these banks available in an integrated payment gateway.

Tazapay’s dynamic geolocation and localised payment methods allow you to tap into Australia and 80 more countries with localised currencies. Not only that, enjoy a 0% fee for local bank transfers made to your cross border transactions and take advantage of our competitive FX rates too! So what are you waiting for? Contact us today:

Sources

1. The Evolving Retail Payments Landscape | Payments System Board Annual Report – September 2022 | RBA
2. Number of ATM cash withdrawals in Australia FY 2014-2021
3. RELEASE OF THE REPORT OF THE FINANCIAL SYSTEM INQUIRY AND INITIAL GOVERNMENT RESPONSE ON MERGERS POLICY
4. Westpac toppled as nation's third-largest bank | Mortgage Professional Australia