Australia’s payment habits have shifted rapidly. Tap-and-go, digital wallets, and online checkouts are now everyday expectations. With this convenience comes a new challenge for businesses: keeping up with security standards while maintaining customer trust. But those worlds are fast colliding. As consumers wise up to the impacts or poor payment security, you can’t win their trust without it.
How Australians Are Paying Now
The Reserve Bank of Australia (RBA) publishes data on retail payments, helping us understand how Australians prefer to pay.
Cash has all but disappeared. According to the Reserve Bank of Australia, just 13% of all payments were made with cash in 2022. Back in 2007, it was nearly 70%.
What replaced it?
- Card payments now account for about 76% of all transactions
- Debit cards increased from 15% of payments in 2007 to 51% in 2022
- Tap-and-go is used for 95% of in-person card transactions
- Mobile wallets like Apple Pay and Google Pay rose from 10% to 25% between 2020 and 2022
The message is clear. Australians want fast, easy, and secure ways to pay.
But as card payments become the default, fraud is on the rise. The Australian Bureau of Statistics (ABS) reports that card fraud rose by 13.8% in the 2023/2024 financial year, impacting 9.9% of Australians.
The risks of card fraud are now well-documented, leading to consumer hesitation about making card payments.
Security Concerns Still Drive Customers Away
Despite better digital payment tools, many businesses still lose sales at the checkout. A Radial survey revealed nearly half of customers abandoned a purchase because the website didn’t feel secure.
Here’s what the research found:
- 45% were unsure how their data would be used
- 50% want strong password protection
- 37% look for a Verified by Visa or Mastercard SecureCode
- 32% prefer two-factor authentication
Customers are looking for simple signals that their payment data is safe. And they’re voting with their wallets: 48% of consumers abandoned a cart due to lack of visible security. If your checkout lacks visible trust indicators, you may be losing revenue.
A PayPal report in 2023 found that 74% of consumers are more wary about online payment security than they were twelve months prior. This twelve month period coincided with high-profile data breaches, such as those impacting Optus and Medibank, planted cyber risks firmly in the public consciousness.
To Regain Consumer Trust, We Must Go Back to the Future
Today’s concerns aren’t new. They echo the challenges early e-commerce merchants faced when trying to earn consumer trust. In 1999, the United Kingdom’s National Consumer Council reported that 66% of online shoppers were worried about the security and privacy risks of entering their card details online.
Enter PCI DSS: a framework developed by the major card brands to safeguard card transactions by establishing clear security standards for merchants and service providers to follow.
For payment service providers like Cardgate, embracing PCI DSS compliance has been critical to thriving in the e-commerce era, particularly as consumer trust in online payment platforms began to grow.
Combatting today’s wave of payment security concerns, particularly in e-commerce, is an even greater challenge. Payment cards now underpin almost every transaction and offer convenience that consumers rely on. Just like in the early days of PCI DSS, some merchants will prioritise payment security and earn consumer trust. Others, by remaining complacent, risk losing market share or facing a business-ending data breach.
PCI DSS Compliance Signals That You Take Security Seriously
The Payment Card Industry Data Security Standard (PCI DSS) is the global benchmark for payment data protection. It’s not just about ticking compliance boxes. It shows your business understands the risks and is taking concrete steps to reduce them.
The latest version, PCI DSS v4.0, brings stronger requirements around:
- User authentication.
- Encryption of cardholder data.
- Continuous risk monitoring.
- Regular ASV scanning and vulnerability testing.
While your customers may not know PCI DSS by name, they will notice when security is missing. Vague privacy policies, confusing checkout steps, or lack of visible protections are often enough to make them walk away.
Five Ways to Improve Payment Security and Earn Trust
1. Add visible trust indicators
Include HTTPS, padlock icons, and security certifications in your checkout.
2. Be clear about data protection
Communicate how customer data is collected, stored, and safeguarded in plain language.
3. Use two-factor authentication
Two-factor authentication adds a crucial layer of protection to customer accounts and payments, with minimal disruption to their user experience.
4. Offer secure and familiar payment options
Give customers a choice of secure methods, including cards, mobile wallets, and trusted Buy Now, Pay Later (BNPL) providers.
5. Share your commitment to security
Highlight your PCI DSS compliance and proactive fraud protection measures.
Robust Payment Security Is Now a Competitive Advantage
Today’s customers expect both convenience and protection. Nearly half of cart abandonments stem from a lack of trust in the payment process. That makes security an opportunity.
By embedding strong protections and showing them clearly to your customers, you go beyond compliance. You build confidence and loyalty.
Stratica helps Australian businesses design secure, seamless payment experiences that meet both compliance requirements and customer expectations. Book your complimentary security review to find out where you stand and how you can strengthen your payment environment.