Australia is expected to be one of the fastest countries to move away from cash after the COVID-19 pandemic accelerated a move to digital payments.
Australia’s use of cash in point of sale transactions will decline to 2 per cent by 2025 from its present 7 per cent as more Australians choose to pay with digital wallets according to a recent study completed by FIS in its Global Payments Report.
The arrival of COVID-19 forced many to use alternative payment methods to cash, however, as residents in flood-ravaged regions grapple with power outages that have severely affected banking and internet connections in the region, therefore cash would probably retain a place in the payment’s ecosystem for some time.
FIS predicts that Australia’s e-commerce market will rise more than 50 per cent between 2021 and 2025 to $US70.7 billion ($97 million) in transaction value.
The leading online payment method last year was credit/charge cards, which accounted for 33 per cent of transaction value, followed by digital wallets at 26 per cent, debit cards at 15 per cent and buy now, pay later, which accounted for 11 per cent.
Digital wallets are on track to overtake credit cards as the leading online payment method in Australia by 2025, the report said.
The emergence of success stories in the buy now, pay later sector had left Australia and New Zealand well ahead of other markets, but stronger regulation would probably follow.
Buy now, pay later is projected to account for 14 per cent of Australia e-commerce transaction value by 2025, up from its present 11 per cent.
At APICKLE we predict more white-labelled buy now, pay later services could soon be issued by retailers in Australia but here lies the problem.
If your basket size has increased due to buy now, pay later services and you need more inventory or extra cash to make it through payroll, our services can give you the flexibility you need.
Businesses that add an eftpos finance facility to their buy now and pay later strategy have a greater advantage over their competitors because they can manage their finances with greater flexibility.
Applying online is simple, payments are frictionless, and business owners and managers remain in control.
BNPL is becoming the business strategy of choice for growing SMBs. When you choose to partner with APICKLE, you’ll benefit from eftpos finance facility experience that really meets your growth needs.
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