More Australians willing to use credit to shop than pre-COVID

By Ava Crawford ·
Fact Checked
Advertiser disclosure
shopping online with credit card
Photo by Pickawood on Unsplash

When local Coronavirus transmissions are up and restrictions are put into place, people begin to rethink how they buy things. As seen during 2020, COVID impacts Australian consumer habits.

The Australian Statistics Bureau (ABS) impacts of COVID-19 reports showed that by the end of 2020, there was a meaningful shift from in-person shopping to online:

  • One-third of people reported turning to online retailers more than they did before the pandemic
  • 40% felt somewhat uncomfortable shopping in a shopping centre or mall due to the risk of infection.
  • Total online sales experienced an average annual rise of almost 70% from March to October 2020.

  • When people are isolated to their homes, there is typically a shift to online shopping, leading to increased utilisation of credit cards and buy-now-pay-later services.

  • According to Roy Morgan data on Australian finance and shopping attitudes, in the 12 months to March 2021, 38.8% of Aussies agreed with the statement that ‘Credit enables me to buy the things I want’ – an increase of 12.4% points from a year ago pre-COVID-19.

    Additionally, the research shows that 72.4% of Australians report being aware of buy-now-pay-later services - an almost 100% increase over the last three years.

    Roy Morgan chief executive, Michele Levine suggests that new forms of ‘credit’ such as the ‘buy-now-pay-later’ services Zip and Afterpay are now driving a change in these attitudes alongside the financial challenges driven by the pandemic.

    “The increasing uptake of new digital payment services that defer immediate payment plays into the changing attitudes of shoppers,” she says.

    Until recently, Australians enjoyed post-COVID life - maskless, holidaying around the country, dining at packed restaurants - but this did not lead to a sudden reversion to old pre-pandemic shopping habits.

    “The changing attitudes of Australians is being driven not only by the forced restrictions of the COVID-19 pandemic with lockdowns and stay-at-home orders, but also the increasing availability of new technology that enables frictionless banking and shopping without having to even leave one’s house,” said Levine.

    Want to find out more about new payment options available to you? Head to Mozo’s Buy Now Pay Later hub and Credit Card hub to see provider comparisons and a rundown of what you should know!

    Check out the some top credit cards options below:

  • Compare credit cards - last updated 27 November 2021

    Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure
    • Apply By 28 Feb 2022
      Bendigo Bank Low Rate Credit Card

      0% p.a. on purchases for up to 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      0% p.a. for 18 months then 11.99% p.a.
      No current offer
      $45
      -
      Go to site
      Details
    • humm90 Mastercard

      With up to 110 days interest free on your spending, this card is pretty unique in the market, and great for managing your daily spend. Plus, no foreign transaction fees overseas or online. Plus $400 cash back when you spend $4,000 on eligible purchases within first 120 days (T&Cs apply).

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      23.99% p.a.
      No current offer
      $99 $0 in the first year
      -
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      Details
    • Featured Product
      Westpac Low Rate

      Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends November 30th 2021. T&C's and exclusions apply.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      13.74% p.a.
      0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
      $59 $0 in the first year
      -
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      Details
    • Featured Product
      MoneyMe Freestyle Virtual Mastercard

      Use your virtual card instantly once approved (typically within 60 minutes). Features include Tap n Pay with up to 55 days interest-free, transfer money to any bank account and exclusive access to MoneyMe perks. $0 annual fee for lower limits. Must be employed with decent credit history.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      16.99% p.a.
      No current offer
      $209 $0 - $149 based on credit limit, $5/month for balances over $20.
      -
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      Details
    • Featured Product
      Westpac Low Rate - Cashback Offer

      Enjoy a super low rate of 13.74% with 55 days interest free plus $400 Cashback with $4k+ spend on eligible purchases within 4 months of card approval. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends November 30th 2021. T&C's and exclusions apply.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      13.74% p.a.
      No current offer
      $59 $0 in the first year
      -
      Go to site
      Details
    • Latitude Gem Visa

      Enjoy now. Pay later with Latitude. 0% interest for 6 months (purchases over $250). 0% interest payment plans at selected retailers. Up to 55 interest free days. Apply in less than 10 minutes. Must be over 18 to apply.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      19.95% p.a.
      No current offer
      $107 $8.95 monthly fee waived if outstanding balance less than $10
      -
      Go to site
      Details
    • Apply By 30 Nov 2021
      Mozo Expert Choice Badge
      American Express Explorer® Credit Card

      Receive 240,000 Bonus Membership Rewards Points when you apply online by 30 November 2021, are approved and spend $3,000 on your new Card within the first 3 months. T&Cs apply. New Card Members only.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      20.74% p.a.
      No current offer
      $395
      Membership Rewards
      Go to site
      Details
    • HSBC Platinum Credit Card

      0%p.a. on balance transfers for 36 months with no balance transfer fee. Terms and Conditions apply. Mozo Experts Choice Premium Rewards and Balance Transfer Platinum Credit Card Winner 2020.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      19.99% p.a.
      0% p.a. for 36 months and then 21.99% p.a.
      $129 $29 in the first year
      Rewards Plus
      Go to site
      Details
    • NAB StraightUp Card

      Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      0% p.a.
      No current offer
      $120 $10/month - waived if no spend & no balance owing
      -
      Go to site
      Details
    • St.George No Annual Fee

      0% p.a. for 12 months on APR requested at card application. The special promotional purchase rate applies from card approval, after the promotional period, the rate will switch to the variable purchase rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends February 24th 2022.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      0% p.a. for 12 months then 20.74% p.a.
      2.99% p.a. for 15 months and then 21.49% p.a.
      $0
      -
      Go to site
      Details
    • Mozo Expert Choice Badge
      American Express Low Rate Credit Card

      Competitive low rate with $0 Annual Fee. Offers purchase and refund protection. Customers need an annual income of $50,000 or more.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      8.99% p.a.
      No current offer
      $0
      -
      Go to site
      Details
    • Apply By 24 Feb 2022
      St.George Vertigo

      0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends February 24th 2022.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      0% p.a. for 6 months then 13.99% p.a.
      0% p.a. for 32 months and then 21.49% p.a.
      $55 $0 in the first year
      -
      Go to site
      Details
    • Virgin Money Low Rate Card

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      11.99% p.a.
      0% p.a. for 15 months and then 21.69% p.a. (1.00% balance transfer fee)
      $99
      -
      Go to site
      Details
    • Mozo Expert Choice Badge
      American Express Cashback Credit Card

      Get 5% Bonus Cashback in the first 3 months and no monthly fee for the first 12 months. Additional 1.5% cashback with American Express Shop Small Campaign (conditions apply). Complimentary perks and insurances. Eligibility criteria and T&Cs apply.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      20.74% p.a.
      No current offer
      $120 $0 in the first year
      Cashback Rewards
      Go to site
      Details
    • NAB Low Rate Card

      0% p.a. interest on balance transfers for the first 32 months, plus a low ongoing purchase rate after that means you can spend with confidence. There's also up to 55 interest free days on purchases to help you manage your budget better.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      12.99% p.a.
      0% p.a. for 32 months and then 21.74% p.a. (0% balance transfer fee)
      $59 $0 in the first year
      -
      Go to site
      Details
    • Apply By 24 Feb 2022
      Westpac Altitude Platinum

      Earn up to 75,000 bonus Qantas Points ($4k min. spend in the first 90 days on eligible purchases). 0% p.a. for 24 months on balance transfers requested at card application. 1% BT fee applies. $49 First Year Annual fee and Rewards fee. New cards only. Offer ends February 24th 2022. T&C's and exclusions apply.

      Purchase rate
      Balance transfer rate
      Annual fee
      Rewards program
      20.49% p.a.
      0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)
      $200 $99 in the first year
      Qantas Frequent Flyer
      Go to site
      Details

    ^See information about the Mozo Experts Choice Credit Card Awards

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