New report finds digital trade is reshaping opportunities for Australian businesses in the global economy

Stripe, a financial infrastructure platform for businesses, announced today a report exploring how digital trade is reshaping the global economy. It finds that consumers and businesses are optimistic about the globalized economy, with businesses looking to expand into new international markets, and consumers increasingly willing to purchase cross-border goods and services online.

Key findings from the report include:

Businesses and consumers are optimistic about the globalised economy

Despite macroeconomic challenges, both businesses and consumers are optimistic about buying and selling more outside of Australia. Sixty-two per cent of Australian businesses are planning to expand into other countries within the next two years, while 23% expect more than 75% growth internationally over the next five years.

Businesses in Australia feel there are fewer restrictions on how they operate today compared to the past. Fifty-eight per cent think it is easier to run an international business today than it was five years ago. Only 16% find it harder to do so.

me&u, a leading at-table ordering platform in Australia is one company taking full advantage of greater global connectivity to expand into markets such as the US, the UK, and New Zealand. “Once we achieved scale in Australia, we knew we had to set our sights globally, especially since we recognised there was huge potential in markets like America where there are only a handful of players doing what we do,” said Katrina Barry, Chief Executive Officer at me&u. “With Stripe’s payments infrastructure and expertise, we were able to seamlessly manage compliance and ensure our overseas customers were onboarding smoothly and safely. Knowing the groundwork with being expertly handled allowed us to focus on core business operations.”

This optimism about the global economy also extends to consumers. Seventy-two percent of consumers in Australia are open to the cross-border purchase of physical goods, and 68% are open to buying digital services.

Digital trade is expanding access to the global economy

Above: Top industries based on global cross-border payment volume on Stripe from 2019–2022

Digital exports are leveling the playing field and allowing businesses of all sizes — from “single-person multinationals” to large and predominantly offline traditional enterprises — to access global markets.

Seventy-four percent of sole proprietor businesses in Australia now sell internationally, heralding the rise of single-person multinationals. Eleven percent of these sell to more than 11 global markets.

At the other end of the business spectrum, large traditional enterprises — often with thousands of employees — are leaning into cross-border expansion as well. From 2021 to 2022, there was a 24% growth in Australian enterprises selling internationally via digital channels on Stripe. Globally, 50% of enterprises plan to expand further internationally in the next two years.

Traditional, offline industries — such as education — are also transforming in a digitised global economy. Eighty-eight percent of education businesses around the world sell internationally today, and 70% plan to expand further internationally in the next two years.

Digital trade is diversifying international trade routes

Above: Fastest growing digital exports markets based on Stripe transaction data 2021–2022

Economic infrastructure for the internet means businesses can participate in global trade, regardless of where they’re located. However, most businesses have barely begun to tap this potential.

While many of the fastest-growing digital export routes are between neighboring countries, there are striking exceptions. Australia and Ireland have a burgeoning trade relationship driven by travel and tourism, and in 2022 Ireland was the fastest-growing export destination for Australian businesses.

The overall geographic scale of digital export routes is also broadening for all countries analysed in the report. Based on Stripe transaction data from 2022, the top five digital export markets for all countries span across at least two continents. For Australia, the top five digital export markets stretch further, covering three continents — North America, Europe and Oceania (New Zealand).

“There’s no denying businesses in Australia and beyond are operating amid a challenging economic climate. During a period as crucial as this one, they need to make sure they are maximising their potential to increase cash flow, and expansion into overseas markets has proven to be an effective strategy to do just that. We are proud to be providing businesses with the simple, scaleable financial infrastructure they need to achieve global growth,” said Karl Durrance, managing director for Australia and New Zealand at Stripe.

The report draws on aggregated transaction data from the Stripe platform as well as surveys with 1,700 business leaders and 11,500 consumers across nine global markets: Australia, France, Germany, Ireland, Japan, Mexico, Singapore, the UK, and the US. It demonstrates how technology is diversifying international trade routes and creating greater access to the global economy for businesses of all sizes in Australia.