A new report from the credit card comparison website Credit Card Compare (www.creditcardcompare.com.au) reveals that Australian credit card usage has reached unprecedented levels, with cardholders making an average of 23.2 purchases per month. This marks a significant increase from a decade ago, indicating a shift in consumer behaviour towards more frequent use of credit cards for everyday transactions.

Credit card purchases per month, September 2014 – September 2024. RBA payments.

According to the analysis of RBA purchase data, this frequency equates to nearly one credit card transaction per day for the average Australian cardholder.

“We’re seeing a dramatic change in how Australians use their credit cards,” says Gareth Boyd, Head of Growth at Credit Card Compare. “The average user is now reaching for their card nearly daily, not just for big-ticket items but for routine expenses as well.”

The surge in usage frequency aligns with trends observed in Google search data. Google Trends also shows a steady increase in interest for credit card-related searches over the past five years in Australia, with a notable uptick in the second half of 2024 as the cost of living hit Australians in the pocket.

Their analysis of Google search data also revealed regional variations in credit card interest.

New South Wales leads in search volume, followed by the Northern Territory and Western Australia, indicating different adoption rates or usage patterns across the country.

Google searches for “credit cards”, September 2019 – September 2024. Google Trends.

The disparity between New South Wales and its closest peer Victoria is striking. This search data implies that consumers in NSW may be feeling the pinch more than their neighbours in VIC, but they may also be motivated to spend more to earn travel rewards and take advantage of their proximity to Sydney International, the nation’s busiest international airport and Qantas’ main hub.

“It’s clear that demand for credit cards is strong, although how people use them has changed. A combination of inflation and the desire to travel is driving more Australians to use their credit cards to earn rewards points and feel like they’re getting more for their money.”

“It’s good news for destinations popular with Australians such as Bali, Fiji, Japan, and Thailand, all of which are served with direct flights from several Australian capital cities.”