Payments are a core part of business. This article will help you understand the changing landscape of digital payments. You can use these insights to help adapt your business operations to meet evolving customer expectations.
We'll cover everything from the rise of contactless payments to the popularity of mobile wallets.
Below we break down these key trends, why they’re important and how they might impact your business.
Australians are increasingly using cards rather than cash, as shown in reports from the Reserve Bank of Australia. This increase in the use of cards is being seen across all income and age groups. It’s strongest among middle-income households and younger people.
The trend towards card payments appears to be driven by a number of factors. These include the convenience of cards, the growth of online shopping and a decline in the use of cash.
Many businesses are already moving to becoming completely cashless. Research from Fifth Quadrant found just under half (44%) of small businesses are confident they will be cashless by 2030. It suggests that Australia may move closer to becoming a largely cashless society in the future.
The use of contactless card payments, such as tapping a card or mobile device at the payment terminal, has also increased in recent years.
In 2022, contactless card payments made up 95% of in-person card transactions, up from around 85% in 2019. This increase continues a long-term trend that accelerated during the COVID-19 pandemic.
The contactless trend is also showing up in how we order food at restaurants and cafés. Tyro’s Eat Pay Love Report reveals that 21% of people prefer to use a QR code or app to skip queues.
One of the reasons contactless payments have grown so fast is the increase in mobile payments. Mobile devices such as phones and watches account for 30 per cent of all in-person card payments.
Tapping a physical card, rather than a mobile device, is still the most common way of making an in-person card payment. Yet it continues to decline as more consumers switch to mobile payments.
Businesses can use payment and purchase data to help personalise products and services. In fact, many consumers expect businesses to do so.
The 2024 Telstra Tech State of Play research found 70% of consumers surveyed “expect businesses that gather my data, like my name and purchase history to use it to provide me with a good service”.
Consumers may expect businesses to use their data to provide a good service. But they also expect businesses to care for their data. Over 90% of consumers who participated in our Tech State of Play research agreed that it’s important that customer data is protected from cyber security threats when they’re shopping with a small business.
Payment details are among the most important personal data, making payments security a critical consideration.
Many of Australia’s small and medium businesses are already embracing these trends to adapt to changing customer expectations. Despite this, research from Fifth Quadrant suggests many remain cautious about risks surrounding digital payments.
Amongst the top concerns for SMBs are:
The good news is that there are things you can do to manage potential risks to your business.
You can take proactive steps to help maximise the resilience of your payment systems. Think about what backup connectivity options may be available and consider if it’s worth diversifying the EFTPOS devices you have in place.
Having more than one type of EFTPOS solution can help eliminate down time and help your business be more agile. You might also consider having cash on-site in case of emergencies.
Learn how to boost your EFTPOS resilience
Good cyber security practices are important to help keep your business secure across many areas. Make sure you spend time considering payments security and reviewing the broader cyber security measures you have in place.
Key security basics can include strong password management, setting up multi-factor authentication, enabling automatic software updates and being aware of potential threats.
Learn more about how to get the basics of security right
Different EFTPOS and payments solutions offer different types of fee structures. So, it’s worth shopping around.
You may consider certain factors such as special offers, any EFTPOS terminal fees, transaction rate fees and if you’ll be locked into a contract period.
If you know the payment methods your customers want, you can put the right options in place to help maximise your sales in person or online.
To help you maximise the benefits of digital payments, think about tech resilience and cyber security. And don’t forget to explore different payment solutions to help you meet customer expectation, foster loyalty and improve your business operations.
Discover how you can use tech to help evolve your digital marketing strategies and meet your customers’ changing expectations.
Make your first $15K of sales fee-free, plus access flat-rate payments with no lock-in contract, when you take up Tyro with Telstra.
For small business customers new to Tyro, referred by Telstra. Some payment types and transactions excluded. Offer subject to contract and change. Details, T&Cs: Telstra.com.au/tyro
