Australian businesses plan to invest in digital payments

Thursday 31 August 2023 15:10 CET | News

Financial infrastructure platform Stripe has published a report that shows nearly half of Australian businesses plan to invest in digital payments in the next 12 months. 

In joint research with The University of Sydney Business School (USBS), Stripe’s report surveyed approximately 1,000 business leaders regarding the digital payment trends in Australia that help enterprises improve competitiveness and prosper in an uncertain macroeconomic environment.

Financial infrastructure platform Stripe has published a report that shows nearly half of Australian businesses plan to invest in digital payments in the next 12 months.

Australian consumers are becoming more inclined to use digital payments, and the research confirms businesses’ awareness of the importance of new payment technologies, most of them recognising mobile payments and tap-to-pay as innovative solutions for companies in the country. 

The impact of digital payments 

The research found that 46% of surveyed businesses are accepting four or more payment methods, in accordance with the broader trend towards companies accepting multiple payment forms. Moreover, 45% of Australian businesses recognised the need to upgrade their current payment systems, and it has become a priority for many of them. 40% of the respondents have reported that investments in new payment technologies are being discussed at an executive or board level.

By prioritising the implementation of upgraded payment systems, 60% of companies have reported that their competitiveness has improved. Furthermore, through investing in digital payment technologies, 84% of companies have also stated they have better customer relationships, 83% have seen revenue growth, and 82% have seen an increase in their customer base.

The adoption of digital payments mostly has an impact on medium-sized and large enterprises, with 81% reporting that this technology is significant to their digital transformation trajectory, compared to 59% of small businesses.

For approximately 50% of respondents, late payments represent an issue for business survival and, by solving this problem, their companies could accelerate their transition to digital payments. Tools such as e-invoicing simplify customer payments and aid businesses in managing late payments through instant invoicing, integrated payment options, and increased transparency.

Adopted digital payment methods

At the state level, Victorian (VIC) businesses are leading the way in digital payment adoption, with 38% of them using payment methods such as Apple Pay and Google Pay. New South Wales (NSW) and Queensland (QLD) are closely following, with an adoption rate of 34%. The survey also questioned whether business leaders implement online payment links, a URL, a button, or a QR code. Businesses registered in NSW have an adoption rate of 23%, in QLD of 21%, and in VIC and Western Australia of 20%.

At an industry level, enterprises in the retail, financial, and insurance sectors are at the forefront of payment method adoption, with 57% of businesses in retail and 49% in the finance and insurance services sector integrating digital wallets. Payment links are mostly implemented in the professional, scientific, and technical services sectors. 
Businesses also plan to invest in mobile payment methods, with 34% intending to capitalise on tap-to-pay NFC features on mobile devices.   

Challenges in introducing digital payments

More than 54% of respondents have mentioned fraud and scams as their primary concern regarding the adoption of new payment technologies. These concerns underline the necessity for prioritising robust security and fraud prevention strategies that can protect both businesses and their customers. 

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Keywords: digital payments, payments , mobile payments, research, NFC, QR payments
Categories: Payments & Commerce
Companies: Stripe
Countries: Australia
This article is part of category

Payments & Commerce


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