Australia Online commerce is about to grow 12% during 2012

More Australians visited Retail sites compared to last year,

outpacing increase in the global average. Amazon, Apple and

AVG are the top retails sites and local online retailers also figure

prominently among the list of top sites in Australia.

Fast Facts: Online commerce is about to grow 12.2% throughout 2012 with a

reach of about 30 AUD billion by the end of 2011

PayPal mobile is on a steep trajectory of 430% year on year

62% of Australian consumers intend to maintain, grow or start using

mobile commerce in the next 12 month

89% of Australians have internet access and Australia is in the top

five most penetrated PC market in the world

Australians spend 1 of every 5 minutes online on social networking

General statistics 2011

Population 22,591,000

Currency Australian Dollar

Major language English

Av. expenditures 1,555 AUD

Capital Canberra

GDP per capita US$:40,000

Internet usage 2011

Internet access (total) 20,000,000

Users broadband 17,400,000

Penetration 87%

Anticipating on consumer needs prevents shoppers

to drop-out and increases sales conversion rates

Goods and Services purchased online

Australian consumers shop overseas

Australian government takes measures to increase proportion of ecommerce transactions

Australian government takes measures to ensure citizen and consumer confidence online increase. The strategic forecast

is to increase the proportion of businesses that receives orders online from 24% today to 40% in 2014; with a commitment to

continued increases up to 2020.

Australian import regulations and strong AUD are an opportunity for overseas online retailers

When an Australian consumer purchases goods online from an overseas Merchant, Goods and Services Tax (GST) is not

payable on the acquisition if the value of the good is less than 1000 AUD. This is due to the fact that goods sent from

overseas with a value below 1000 AUD are specifically excluded by legislation from being subject to import GST. This

creates a competitive advantage for overseas e-retailers. VAT and GST regimes around the globe have similar

mechanisms but for example the low value importation thresholds of UK and European Union are respectively 18 GBP and

22 EUR. Together with the import regulation the strong Australian Dollar this makes Australian consumers to consider

purchasing goods online at overseas Merchants.

Solid growth of mobile payment methods changes online payments landscape

Mobile payments show a rise of 430% year-on-year. No less than 65% of the total handset market in Australia is internet

enabled. Smartphones are disrupting both the traditional and the online retail environment.

Australian online shoppers demand alternative payment methods next to credit cards

Although 97% of Australian internet users have sourced the web, found great deals and checked-out on their shopping

cars, many of them feel that their choice in method of payment is not in their hands, and is limited to the choices made by

retailers. About 29% of Australians identified PayPal as their prefered payment method for online shopping, ahead of Visa

at 25% and MasterCard at 14%.

Industry high lights – Social Networking

A substantial shift has occurred in the way Australians allocate their time online. Time spent on social networking has

increased substantially with a 26% growth figure in the last 12 months. As in many countries around the world, Facebook is

the clear social networking leader in Australia, both in terms of reach and usage.

Industry high lights – Retail

More Australians visited retail sites compared to the year before. Amazon, Apple and AVG are the top retails sites and

local online retailers also figure prominently among the list of top sites in Australia. Retail in Australia showed a 12% growth

compared to a 5% figure ROW.

Industry high lights – Travel, Hotels and Airlines

Australians are keen travelers and make use of the web for travel information and travel. This travel industry grew by 6% in

12 months on pace with the global average. Hotels and Airlines grew respectively 13% (global average 6%) and 19%

(global average -2%) hence these sites outpaced the worldwide averages.

Payment product spotlight

GlobalCollect’s Portfolio in Australia

International cards GlobalCollect supports MasterCard, Visa, AMEX, JCB

Bank transfer GlobalCollect supports Local bank transfers

eWallet GlobalCollect supports PayPal

Online Banking GlobalCollect supports online banking

Mobile The support for mobile is on the future’s list of GlobalCollect

Bpay is the most popular bill payment and presentment method in Australia. High

security, convenience and being in control of when they pay are among the main

reasons why Australians use BPAY as their preferred payment method. Once Consumers

have decided to pay by BPAY, they are presented in real-time with a unique reference

number and bill code. To complete the payment, Consumers must use their internet

banking service and enter the unique reference number and bill code at the time they

decide. Bpay is free of charge for the consumer.

PayPal acts like a digital wallet where consumers can securely store all their payment

options, such as bank accounts and credit cards. When a consumers makes a

payment he or she does not have to pull out the credit card or type the billing info

every time. They simply click on the PayPal checkout button, log in to their PayPal

account, and select the preferred payment method.

POLi is a real-time bank transfer where the consumer is redirected to his online banking

environment, where after log in they authorize the payment. POLi is supports 15 major

Australian banks. POLi is free of charge for the consumer. Compared to PayPal and

Bpay POLi is less popular.

Sources

Comscore Report “State of the Internet – Australia” |February 2011

Online Business Index “Survey of Australian eCommerce Business” | March 2011

Deloit Report “Australian e-commerce and GST” |2011

AIIA Media Release “Government sets ecommerce benchmark for Australia” | 2011

www.internetworldstats.com

www.IMRG.org (Interactive Media in Retail Group)