The latest data published by the RBA reveals a significant shift in Australian credit card habits. On average, Aussies are now swiping their credit cards 23.2 times per month — more than double the frequency observed just a decade ago.

“This surge in credit card usage shows how deeply embedded credit cards have become in our daily lives,” says Gareth Boyd, the Head of Growth at the credit card comparison website CreditCardCompare.com.au, who analysed the RBA data. “Australians are increasingly using their credit cards for everyday purchases, not just big-ticket items."

It’s clear that for most Australians, the era of reserving credit cards solely for major purchases or emergencies has passed. Today's consumers are just as likely to use their cards for their morning coffee as they are for substantial expenses.

While the RBA data clearly demonstrates a sharp increase in the frequency of transactions, it also reveals that the average transaction value has actually decreased, down from $140 in 2013 to approximately $114 today.

This shift towards more frequent, smaller purchases can be largely attributed to the widespread adoption of contactless payment technology, which has made it effortless to use them even for minor expenses such as a daily coffee.

Despite their surging usage, Australians are not accumulating more debt on the whole. The RBA’s data shows that total credit card debt has decreased significantly, falling from its 2018 peak of $52 billion to $40.4 billion in 2024. This suggests a more sophisticated approach to credit card use, with consumers likely paying off balances more promptly or using their cards primarily for convenience rather than as a credit facility.

"Credit card rewards are probably driving this change in spending habits,” Boyd says. “Points are worth much less if you get charged interest every month because you didn't pay off the balance."

The rise of Afterpay and other Buy Now, Pay Later (BNPL) services is also impacting the credit landscape, particularly among younger consumers. While these services often don't appear in traditional credit card statistics, they may be influencing overall credit usage patterns.

About Credit Card Compare

Credit Card Compare (creditcardcompare.com.au) is Australia's leading platform for credit card comparison, designed to demystify financial choices and empower consumers with the information needed to make informed decisions. With a focus on innovation, reliability, and user satisfaction, Credit Card Compare is dedicated to simplifying the search for the perfect credit card.