Want your customers to pay now, not later? 3 payments trends to know about

As Australians now tap and go for nearly everything, small businesses are in pole position to make the most of the EFTPOS payments revolution.

Business costs may be sky high right now (thanks, inflation), but there is some good news for small businesses looking to speed up cash flow and get those customer payments happening on time.

Whether you’re visiting a customer on site, taking your business out to an event or running a busy restaurant or shop that needs quick turnover, you’ll want to know about these payment trends.

1. The price of EFTPOS solutions is getting competitive

The growing competition in new payments technologies is driving down the costs of EFTPOS solutions for small businesses, says Tyro Product Manager MJ Roxas.

“Australia has heaps of homegrown payment service providers and tonnes of global players that are trying to penetrate the market. So this landscape drives competition, and competition is good,” MJ explains. “Economic theory suggests that it leads to lower prices, higher quality of goods and services, variety and innovation.”

Tyro, which provides payment solutions to more than 66,000 Australian businesses, is at the forefront of this revolution. Their latest on the go offering, Tyro Go, is aimed at helping to speed up payments for small businesses looking for a simple payments solution.

Why is it an issue? According to research from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), small businesses are being hard hit by late payment times from their big business clients. Only three out of 10 big businesses pay their small business suppliers within 30 days, while some take more than 120 days to pay up.

While not every customer of yours may be a big business, the pain of invoice chasing is unfortunately all too familiar for a lot of small businesses. It’s a major pain point that these EFTPOS solutions seek to address.

2. Aussies are leading the way with convenience culture

Another positive is that Australians are some of the world’s most enthusiastic adopters of digital wallets – well ahead of North America and Europe. According to Reserve Bank of Australia data, at least four out of five card payments we see now are contactless.

“At Tyro, we’re seeing nine out of 10 – so a lot of our customers are doing contactless payments already,” MJ adds.

This opens up an opportunity for small businesses who haven’t yet moved their systems to more flexible and digital-based options that cater to the seamless experiences consumers clearly want.

“Australia has a tech-hungry culture, and we see both businesses and consumers embracing new technologies,” MJ shares. “For new payments solutions to succeed, you need the buy-in from businesses that will accept these new forms of payment and the buy-in of customers who would hopefully want to pay using these new technologies.

“It’s good that there’s a general trust, digital confidence and literacy in Australia that make this industry ripe for players to introduce new solutions and be adopted by consumers.”

3. Tech is doing a lot more, so you don’t have to

With all the different payment options available today, it can be confusing to know which methods are deal-breakers for your customers. The latest EFTPOS technologies are designed to connect up with all of the major payments options – without making it more complicated to use.

“Small and medium businesses are open to innovation, according to ASBFEO, and it’s our duty in the industry to democratise new technologies and make an inclusive digital ecosystem,” MJ adds. “When deciding which is the right solution to take up, the overall business model must be taken into account.”

This means looking at both your customers’ use cases and what will work best for your business. For example, customers want multiple payment options so a reader like Tyro Go accepts Visa, Mastercard®, eftpos, American Express, and JCB, as well as digital wallets Samsung Pay, Apple Pay and Google Pay™.

Having a portable EFTPOS reader is one way to encourage on-the-spot payment, which can include down payments for future services.

“Small businesses in the trade sector typically have repeat customers and acquire new ones through word-of-mouth, whether it be in person or online. This kind of network typically have a high level of trust so the challenge for businesses is not whether ‘Will I get paid?’ but ‘When will I get paid?’” MJ explains. “Small businesses are challenged to get paid on time, and that’s the pain point that Tyro Go aims to address. With Tyro Go, businesses can secure a payment at the time when the service is rendered.”

As a small business owner, you get the benefit of making on-the-spot sales. But there’s also the technological convenience: you can pair the Tyro Go reader with a compatible internet-enabled smart device via Bluetooth¹, send digital receipts with your business branding, and access daily sales reporting via the Tyro App and Tyro Portal.

The message is clear: technology can be your friend when it comes to encouraging quicker payments in today’s world.

“Gone are the days when customers would have to ask whether card payments are accepted,” MJ concludes. “What used to be ambitious in the past is becoming more and more table stakes, and this we do to help Australian businesses grow.”

To find out more about Tyro Go, visit their website.

This article is brought to you by Kochie’s Business Builders in partnership with Tyro.

Feature image: AdobeStock

Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Apple Pay is a trademark of Apple Inc., registered in the U.S. and other countries.

Google Pay is a trademark of Google Inc.

¹Tyro Go EFTPOS reader requires a Bluetooth-enabled mobile device or tablet, the Tyro Go App to be installed, and mobile network coverage. Check Google Play and App Store for the latest OS compatibility requirements.