Financial infrastructure platform for businesses, Stripe has published a new report, together with The University of Sydney Business School (USBS), ‘The Future of Digital Payments for Businesses in Australia’
Which finds nearly half (46%) of Australian business leaders plan to invest in digital payments in the next 12 months to make transactions faster or easier for customers.
“Australia is no stranger to digital payment innovations—after all, we’re a nation of entrepreneurs and innovators,” StripeAustralia and New Zealandmanaging director, Karl Durrance said.
“While consumers are taking the lead on digital payments usage, this research confirms that there’s strong awareness amongst businesses of how important new payment technologies are. It’s encouraging to see them recognise mobile payments and tap to pay as the next frontier in digital payments for businesses in Australia.”
Nearly half (46%) of businesses surveyed are now accepting four or more payment methods, consistent with a broader trend toward businesses accepting multiple payment forms. At the same time, nearly half of Australian businesses (45%) acknowledged the need to improve their current payment systems. This has become a top-level priority, with 40% of survey respondents reporting that investment in new payment technologies is being discussed at the executive or board level.
This high prioritisation reflects the fact that 60% of businesses report that digital payment technologies have improved competitiveness. Businesses that invested in digital payments technologies report significant improvements to customer relationships (84%), improved revenue growth (83%), and an increase in their customer base (82%).
The report also found that 50% of businesses consider late payments to be a serious threat. Solving this problem is one of the key reasons they are accelerating their transition to digital payments. Digital payments tools such as e-invoicing simplify customer payments and help businesses manage late payments through instant invoicing, integrated payment options, and increased transparency.
Mobile payments have emerged as the top area of investment for digital payments technologies with one-third (34%) of businesses planning to invest in tap to pay NFC features on mobile devices, including mobile phone-enabled payments and wearables.
While digital payment technologies provide businesses with tremendous new opportunities, they also introduce some challenges. More than half (54%) of businesses identified fraud and scams as their primary concern when it comes to adopting new payment technologies. These concerns highlight the need for payment service providers to prioritise robust security and fraud prevention strategies to protect businesses and their customers.