7 Retail Trends Shaping Payment Needs Down Under
There are almost 140 000 retail businesses in Australia, accounting for over 4% of the country’s GDP and 10% of its employment. It’s a dynamic industry that’s rapidly evolving, driven by digital transformation and changing consumer behaviours.
A market where the personal touch counts
Despite the rise of Australian e-commerce, physical stores remain a key pillar of the Australian retail market. 90% of Australians prefer to shop in-store – 34% of them just because they enjoy it.
Around 45% of Australian omnichannel and brick-and-mortar retailers plan to open more stores, and by 2030, it’s expected that in-store retail will still account for nearly 80% of the total market.
The emphasis is on building great experiences, which is fuelling major investment in modern and flexible POS systems.
Strong demand for next-gen acceptance
As large stores expand and update their infrastructure, and smaller businesses seek to keep pace using smart devices to enhance their checkouts, the POS market has surged. Experts project a 12.48% CAGR for POS sales through to 2028.
Mobile POS (mPOS) solutions and Android devices are leading the charge, especially in Australia’s hospitality and retail sectors, where employees can take orders and payments directly at the table or on the shop floor.
Cloud-based POS solutions – like Castles Technology SoftPOS – are also gaining traction, especially for smaller retailers and those running small trading or mobile service businesses who want to utilise smart phones and tablets to take sales.
Across all sectors, there is a race to ramp up contactless and alternative payments at the checkout to support modern customer expectations and boost merchants’ competitive edge.
Seven trends shaping Australian merchants’ POS strategies
As we move toward 2025, it’s clear that Australian retailers are prioritizing advanced payment technologies and seamless POS systems to meet the growing demand for convenience and innovation. Here are 7 important trends that are shaping their checkout needs:
- One in three Australian retailers are focusing on staff training to improve customer experiences.
Easy-to-use POS systems with intuitive interfaces and integrated commerce management tools help staff focus on service and enhancing customer satisfaction. - 51% of Australian retailers are tapping into big data to optimize inventory, pricing, and personalized shopping.
Modern POS systems help capture real-time customer data, feeding into analytics platforms that drive smarter business decisions. - 68% of Australian businesses are investing in unified commerce systems to create a seamless, connected customer journey across all channels.
Cloud platforms like the Castles Technology CasHUB make it easier to integrate and manage new and legacy POS systems, from fixed terminals to mobile and unattended devices. - 22% of retailers are interested in expanding their use of contactless payments.
While credit cards remain the top payment method, alternatives like BNPL and digital wallets are growing quickly. - Shoppers are becoming more selective due to the country’s rising cost-of-living pressures.
Loyalty programs are essential for customer retention. Integrating digital or card-based loyalty rewards at the checkout can help strengthen customer relationships. - Nearly 17% of Aussie shoppers are frustrated by long checkout lines.
Retailers are looking to POS solutions that speed up transactions, with mobile payments and self-checkout options gaining traction to reduce wait times and improve customer satisfaction. - Australia’s New Payments Platform (NPP) has set the stage for faster, more flexible transactions.
NPP is already reshaping retail payments by enabling real-time transactions, reducing friction, and supporting innovation in payment technology. Enabling acceptance in store is the next step to empowering consumers and merchants with real-time benefits.
Keeping Australian merchants ahead of the curve
Investing in technologies that deliver seamless, personalized experiences—whether through AI-driven e-commerce platforms, advanced in-store systems, or new payment methods—is the key to meeting Australia’s shifting consumer expectations.
At Castles Technology, we’re ready to help retailers leverage our world-class payment solutions. Our Australian operations, led by Country Manager Jay Whitmore, offers local support to help merchants optimise their acceptance estates with all the hardware and software tools they need to boost efficiency, security and sales whether at the checkout, on the road, or in a self-service environment.
