The digital payment market in Oceania—a region that includes Australia, New Zealand, Papua New Guinea, and other islands in the Pacific Ocean—is projected to be worth $153.75 billion in 2025. But successfully expanding into this region requires a focus on contactless payments, a superior customer experience, and strong fraud detection and prevention systems.

Below, we’ll explore how to enter the payment space of Oceania, including:

• Welcoming contactless payments
  
• Improving the checkout experience
  
• Boosting payment security
  

The state of the market

Digital wallets and contactless card payments are gaining traction in Oceania, especially in Australia and New Zealand, and fintech innovations are reshaping the market with an emphasis on real-time payment systems. On the less developed islands of Polynesia, Micronesia, and Melanesia, cash is used more widely, which reflects the diversity of the region.

Regulations have shifted to support these technological advancements to keep customers safe and ensure the broader market remains stable. Data protection and Anti-Money Laundering (AML) laws require businesses and financial institutions to closely monitor data collection and verify customer identities as digital payments become increasingly prevalent.

Payment methods

Given its geographic diversity, Oceania is home to numerous payment methods and consumer preferences. Here’s a closer look at the methods that are most common for both in-person and online transactions.

Current usage

While cash payments are common in the smaller island nations, cash usage is declining overall. In Australia, for example, only 13% of payments were made with cash in 2022, down from 69% in 2007. Credit and debit cards are used across Oceania, and contactless card payments accounted for 95% of in-person card payments in Australia in 2022. Other contactless payment methods such as digital wallets (e.g., Apple Pay, Google Pay) offer similar convenience. A 2022 survey found that 10% of New Zealanders preferred mobile payments for everyday transactions, but that figure increased to 20% for people aged 34 and under.

Buy now, pay later (BNPL) and real-time payments are also popular. Real-time payment solutions like PayTo, Osko, and POLi allow customers to make fast, secure payments straight from their bank accounts. PayTo was developed by the New Payments Platform (NPP), which reached more than 114 million accounts as of March 2025. Australian BNPL transactions are expected to grow by over 12% annually to reach about $14.52 billion in 2025, with local providers like Zip and Afterpay offering customers the ability to pay in installments.

Popular B2C payment methods in Oceania

• Credit and debit cards
  
• Digital wallets
  
• Real-time payments
  
• BNPL
  

Popular B2B payment methods in Oceania

• Credit cards
  
• Wire transfers
  
• Direct debits
  

Emerging trends

Several factors have driven Oceania’s interest in cryptocurrencies, including their potential as an investment asset and a dissatisfaction with traditional financial institutions. About 7% of New Zealanders and 17% of Australians owned cryptocurrencies in 2022, according to the Finder Cryptocurrency Adoption Index. Local cryptocurrency exchanges like Easy Crypto and global platforms like Coinbase have increased interest in and access to digital currencies.

Ease and friction of entry

Expanding into this payment market involves specific considerations. Here’s an overview of what businesses should know about taxes, chargebacks, cross-border payments, and payment security in Oceania.

Taxes

New Zealand and Australia assess goods and services tax (GST) at rates of 15% and 10%, respectively. Businesses must collect and remit this tax to the government. Late payments or errors in calculating GST can lead to penalties so businesses should make GST collection and remittance a priority.

Chargebacks and disputes

Australia and New Zealand have strong consumer protection laws. For instance, the Consumer Guarantees Act 1993 is central to New Zealand’s chargeback policy. This legislation requires goods and services to fit their descriptions, be of acceptable quality, and serve their intended purposes. If customers believe the goods or services they received do not meet the standards outlined by the law, they can initiate a chargeback with their credit card issuers or banks.

Consumer protection laws generally require financial institutions and businesses to prove a payment was authentic in the event of a dispute, and the transaction funds are usually held temporarily while these checks are conducted.

International payments

If your business plans to accept international payments, you should consider these factors:

• Currency conversion
  Accepting payments from more than one country in Oceania requires currency conversion. For businesses, financial institutions typically increase the baseline rate for currency conversion at which banks lend to each other. Payment processors can simplify this process by automatically calculating conversions at checkout.

• Transparency regulations
  The Australian Securities and Investments Commission regulates currency conversion in Australia. It demands transparency and proper disclosures around all associated fees and exchange rate markups.

• Closer Economic Relations (CER)
  Australia and New Zealand’s trade relationship is deeply rooted in the CER trade agreement, which promotes an easy exchange of goods, services, and investments. This partnership lowers costs for companies that operate in both countries and makes it easier to accept cross-border B2B payments.

Security and privacy

Oceania’s security and privacy regulations are continually developing to meet the demands of new payment technologies. Here’s a rundown of the security and privacy guidelines to know:

• Data protection laws
  Oceania’s larger countries have laws that govern how personal data is processed. For example, New Zealand’s Privacy Act 2020 dictates how organizations can collect, use, and disclose information. These laws require businesses to obtain customer consent for data collection and report any data breaches.

• Electronic transaction guidelines
  Regulations that govern electronic transactions recognize the validity of electronic contracts, electronic signatures, and other electronic communications and encourage ecommerce and digital payments.

• AML and CFT regulations
  AML and Countering the Financing of Terrorism (CFT) laws mandate financial institutions to implement measures aimed at preventing money from flowing into illicit or terrorist enterprises, including conducting customer due diligence, monitoring transactions, and reporting any suspicious activities to the authorities.

• PCI DSS compliance
  Compliance with the Payment Card Industry Data Security Standard (PCI DSS) is mandatory for businesses that store, process, or transmit credit card data. This standard outlines security protocols and policies to protect cardholder data.

Key success factors

Oceania’s geographic isolation, varied payment preferences, and fraud risks create challenges for businesses that enter this market. Here are a few tactics businesses can implement to successfully accept payments in this region:

• Accept contactless payments
  From Tap to Pay to digital wallets, customers in Oceania prefer contactless payment methods. Businesses that offer multiple contactless options will be able to serve the broadest range of customers.

• Improve mobile checkouts
  Almost three-quarters of Australians report shopping via their mobile devices, and businesses can capitalize on mobile commerce sales by refining their payment pages for mobile and accepting digital wallets and BNPL.

• Upgrade the customer experience
  Multicurrency features, a simple checkout process, and helpful customer support all contribute to customer satisfaction and reduce barriers for ecommerce customers across Oceania.

• Implement advanced payment security
  ANZ Bank reported in 2023 that about 70 in every 100,000 transactions in New Zealand were fraudulent, which emphasizes the importance of implementing fraud prevention systems. Machine learning algorithms can monitor transactions in real time to simplify the process for businesses.

Key takeaways

Customers in Oceania use numerous payment methods for in-person and online transactions so businesses should offer multiple options while ensuring their payment systems are secure. Here’s a recap on this market, along with tips any business can put into action.

Accept contactless payments

• Accommodate digital wallets
  Digital wallets are popular in Oceania, and businesses should embrace this type of payment for quick, easier transactions.

• Offer BNPL options
  Local BNPL providers Afterpay and Zip allow customers to make purchases they might not otherwise be able to afford in the moment. Offering these options can make your business’s products and services accessible to more customers.

• Support real-time transactions
  Accept domestic real-time payment methods like PayTo and Osko for a quick, convenient checkout process.

Improve the checkout experience

• Localize your payment pages
  Use multicurrency features to display prices in customers’ local currencies. Payment solutions like Stripe can automatically calculate the localized price and handle currency conversion.

• Speed up online checkout
  Whether customers are using their computers or mobile devices, make the checkout process faster with one-page or one-click checkout. These features can save customers time and prevent abandoned carts.

• Provide accessible customer support
  Make your customer support channels easy to access so payment issues can be resolved quickly, and assure that live support is available in line with Oceania’s numerous time zones.

Boost payment security

• Use Strong Customer Authentication (SCA)
  Verify customers’ identities with two-factor authentication and passive biometrics, and employ 3D Secure to reduce the risk of payment fraud.

• Store and transmit customer data safely
  Comply with local data protection regulations and PCI DSS to keep payment data secure and avoid penalties.

• Choose a secure payment gateway
  Select a payment gateway that encrypts payment data and maintains compliance to keep your payment system fully secure.