Australians are reaching for their credit cards at an unprecedented rate, with new data from the Reserve Bank of Australia (RBA) revealing that the average Aussie now swipes their card 23.2 times per month. That’s more than double the frequency observed just a decade ago, marking a significant shift in how we manage our finances.
“This surge in credit card usage shows how deeply embedded credit cards have become in our daily lives,” says Gareth Boyd, Head of Growth at CreditCardCompare.com.au, who analysed the RBA data. “Australians are increasingly using their credit cards for everyday purchases, not just big-ticket items.”
Indeed, the days when credit cards were reserved for emergencies or major expenses seem to be well behind us. Today, Aussies are just as likely to use their cards to pay for their morning coffee as they are for a new television.
Interestingly, while the frequency of credit card transactions has skyrocketed, the average transaction value has actually decreased. Back in 2013, the average spend per swipe was around $140; today, it’s closer to $114. This trend towards more frequent, smaller purchases is largely driven by the widespread adoption of contactless payment technology, which has made it easier than ever to use a card for even the smallest of transactions.
But here’s the surprising part: despite using their credit cards more often, Australians are not accumulating more debt. In fact, the RBA’s data shows that total credit card debt has fallen significantly, from a peak of $52 billion in 2018 to $40.4 billion in 2024.
This suggests that Aussies are becoming savvier with their credit cards, possibly paying off their balances more promptly or using their cards primarily for convenience rather than as a borrowing tool.
“Credit card rewards are probably driving this change in spending habits,” Boyd adds. “Points are worth much less if you get charged interest every month because you didn’t pay off the balance.”
The rise of Buy Now, Pay Later (BNPL) services like Afterpay is also influencing the credit industry, particularly among younger consumers. While these services don’t typically show up in traditional credit card statistics, they’re undoubtedly shaping the way Australians approach credit and spending.
For more insights into Australian credit card usage and to compare the best credit card options, visit CreditCardCompare.com.au. As Aussies continue to evolve their spending habits, it’s clear that convenience and rewards are key drivers behind the way we use our plastic today.
