Online spending in Australia experienced a significant decline of $2.9 billion year-on-year due to a downturn in the retail and e-commerce sector, according to the Q3 Digital Economy Index by global financial platform Airwallex. The quarterly index captures snapshots of the digital economy across various industries and states, revealing that online spending decreased across all sectors, ranging from 1.29% for the digital and technology sector to 8.02% for retail and e-commerce. However, online travel spending managed to buck the trend with year-on-year growth of 12.75% and a 6.49% increase since Q2. Retail spending was identified as the common factor leading to the decline in each state, except for Queensland where increased spending in the travel sector pushed the overall year-on-year figure up. Matt Sek, Airwallex’s Australia and New Zealand Vice President of Growth, believes that the upcoming Q4 is likely to see an upswing in digital spending as Australians take advantage of the peak sales season. Despite economic concerns over the past year, Australians have saved a significant amount of money, leading to an expectation that they will conduct thorough research and search for the best bargains before making a purchase. As a result, businesses are encouraged to find ways to maximize their sales season promotions and entice customers to spend again. Due to declining revenues, companies have been cutting back on their own spending, including online advertising. Therefore, they are carefully assessing their return on investment and seeking savings and efficiencies in their cost base to offer attractive discounts and deals to consumers. Airwallex is a global financial platform that offers solutions for businesses to manage their payments, treasury, spend management, and embedded finance. With its proprietary infrastructure, Airwallex aims to simplify global payments and financial operations, enabling businesses of all sizes to expand globally. It supports over 100,000 businesses worldwide and is trusted by well-known brands such as Brex, Rippling, Navan, Qantas, and SHEIN.
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