Australians spent nearly AUD$200 more through the latest peak sales season in 2023 compared with 2022, according to the latest Digital Economy Index from global financial platform Airwallex.
The Airwallex Digital Economy Index reportedly “records year-to-date spending per adult, as well as quarter-by-quarter snapshots of the digital economy by state and industry.”
Airwallex Australia and New Zealand Managing Director Luke Latham said Australians appeared to “be relaxing a little after a year of spending restraint in the face of cost-of-living pressures.”
Latham said:
“Australia’s digital economy finished 2023 in a solid position with a strong $200 uptick in per-person spending. With e-commerce, travel and financial and insurance spending driving the increases, it’s clear Aussies are letting their hair down a bit while also making sure they’re investing for a rainy day.”
As noted in the update:
“Interestingly, the spending pattern was inconsistent across the country, highlighting that the hip pocket pain from mortgage increases and inflation are likely being felt most keenly in NSW, Victoria and South Australia and deterring spending.”
Latham said businesses with established online strategies “would be well-placed to make the most of the return of consumer confidence in regions where spending is trending upward.”
As mentioned in a blog post by Airwallex:
“Across all sectors, there’s a lot of optimism that the signals we’ve seen towards the end of 2023 indicate a return to online spending growth,”
Latham added:
“While the huge growth in online education spending has come off the boil from its COVID-era peaks, we’re seeing bright spots across the board, particularly for e-commerce, financial services and travel businesses. Now’s the time for businesses to be looking closely at the online experience for their customers as well as the platforms and partners they use to reach new customers.”
As covered, Airwallex says that it is “a global financial platform for modern businesses, offering trusted solutions to manage everything from payments, treasury, and spend management to embedded finance.”
With their proprietary infrastructure, Airwallex says it “takes the friction out of global payments and financial operations, empowering businesses of all sizes to unlock new opportunities and grow beyond borders.”
Founded in Melbourne, Airwallex claims that it “supports over 100,000 businesses globally and is trusted by brands such as Brex, Rippling, Navan, Qantas, SHEIN and many more.”
As noted in the update, the Digital Economy Index focuses “on the income turnover for digital businesses as an indication of consumer confidence and the appeal of different types of digital businesses.”
The Index monitors the performance and progress of Australian digital businesses, “analyzing data from a sample of 1000 Airwallex customers, adjusted for company size, industry and geographic location to ensure relevant representation.”
The Airwallex group processes “around $80 billion in annualized transactions each year.”