Even with the heavy fees that comes with it, the ‘tap and go’ trend on debit and credit cards continues to grow , as cash transactions seem to be becoming a thing of the past.
According to the Reserve Bank’s yearly bank fee survey showed that banking fee income made from businesses that accept tap and go payments has grown massively in the past few years. There was a 3% increase on the overall fee income from businesses with merchant service fees on card transactions as the main driver of the spiker.
Over the last couple of years, RBA also found that there has been a significant decline in ATM withdrawals as people are opting for electronic payment options over cash. Aussie shoppers are after the convenience provided by tap and go.
In addition to this, many banks are now offering services like mobile payments options on their cards, like Apple Pay, Samsung Pay and Google Pay, it’s never been easier for customers to tap and go on purchases which hurts small businesses hard as they try to keep up with the large fees they pay on card transactions.
To provide customers and business owners other options to the more expensive Mastercard PayPass and Visa Paywave, the RBA is currently pushing to help low-cost payment alternatives grow, like eftpos. Moreover, they are working on reforming the way in which banks charge merchants on tap and go transactions.
Peter Marshall, Mozo’s Banking Expert, said “Contactless payments have become the main method of paying for shoppers, so it’s crucial that we establish a fee structure that is regulated properly. It’s important that the system is fair for both businesses and customers, so smaller businesses aren’t left struggling to keep up with the large fees that come with accepting tap and go payments.”
Westpac, Kounta collaborate to speed up retail transactions Posted on: 18-07-2019
Westpac and Kounta collaborated to connect the former's Presto Smart payment terminal to the latter's PoS system using cloud-based technology.Read More
Zip gains retailers as buy now pay later comes under attack Posted on: 15-07-2019
A string of new retailers join Buy now, pay later operator Zip, bringing representatives across Australia fashion, automotive and food into the fold.Read More
Instagram boss lays out plan for in-app shopping bags, checkout Posted on: 11-07-2019
Instagram’s desire to play a bigger role in consumers’ online shopping behaviour, has been put permanently to rest.Read More
Adyen: The future of retail will be “dictated by the customer” Posted on: 21-06-2019
According to Michael van Aalten, modern payment frameworks are changing the manner in which we shop.Read More
Report: Retailers must up the speed, accessibility of ecommerce Posted on: 19-06-2019
Last year, new Australia Post statistics showed Australians spent $27.5 billion buying online and are still being driven by email marketing campaigns.Read More