What can the latest Thryv and Payments Dive Consumer Payments Survey reveal for Australian businesses?
Late last year, Thryv asked 2,050 U.S. Consumers of all ages about their preferences when it comes to small business payments in 2022.
Australian consumer trends tend to follow closely with our American counterparts’. However, the highly adoptive Australian consumer market means that in some cases, Australians had already begun their migration to a cashless, digital-only world.
There’s a striking similarity to what’s occurring in the U.S. playing out in our home field.
In this article, we’ll interpret the data in the Thryv Payments Survey through an Australian lens, and help your business take its next steps in the right direction.
An Ever-Changing Payments Landscape
We know that the decline of cash continues. The market is still adapting to the unique pressures on digital evolution caused by the Covid-19 pandemic. We’ll see exactly how this trend continues at the end of the year when the RBA launches its next survey.
The Thryv Payments Survey showed that the majority of transactions were going to be digital in 2022.
Much like in the U.S., consumers in Australia have taken to debit card payments over credit cards or bank transfers.
For small businesses, this means that providing only one type of payment option will restrict their growth in the coming months.
In fact, the Payments Survey discovered that over 70 per cent of customers say if they had to choose between two providers, the available payment options would influence their final decision.
There is no reason to think this is different in an Australian market. In fact, it may be even higher.
Over 70 per cent of customers say if they had to choose between two providers, the available payment options would influence their final decision.
Ease-y Come, Ease-y Go
Another important finding in the Payments Survey was how consumers reacted to complicated payment options.
In the survey, consumers said the easier the payment tool and system, the more likely they were to enjoy the service or product.
For Australian businesses, who have been told to make their payments system as easy as possible since 2019, this is a trend that’s only going to keep on growing.
Ease of access also includes the different platforms that consumers can pay your business on. We’re beyond the point where you can dictate which payments you receive. If you don’t accept a particular type of payment option, you’ll probably lose that customer, according to the Survey.
Include the fact that payments platforms in Australia are expanding, and you’ll see the direction your small business will have to take in the future.
If you don’t accept a particular type of payment option, you’ll probably lose that customer
Bridging the Generational Divide
One thing we can be sure of is that generational trends will continue to evolve similarly to the U.S.
The Thryv Payments Survey discovered that despite the gaps, technological adoption remains largely steady across all generations.
But it was among Millennials and Gen Z that we started seeing some interesting developments that will likely be replicated here.
In fact, over 35 per cent of both Millennial and Gen Z consumers plan on spending between USD$1,000 and USD$5,000 on home-related costs in 2022.
This purchasing power will only continue to grow as they advance in jobs and careers. Catering to this growing market is going to be an expanding benefit for your business deeper into the year and beyond.
Over 35 per cent of Millennial and Gen Z consumers plan on spending between USD$1,000 and USD$5,000 on home-related costs in 2022.
Your Key Takeaways
So in summary, having a payment system that can handle the multiple ways Australian consumers like to pay is going to be critical.
Giving Australian customers a perfect experience – both in service and in payment – is only going to increase competitive advantages.
And the growing purchasing power of new generations means your business needs to start catering for a younger market, or be left behind.
Keen on seeing the results for yourself? Download your own copy of the Thryv and Payments Dive 2022 Consumer Payments Survey.
: According to https://www.netwealth.com.au/web/insights/dimensions-of-the-advisable-australian/technology-adoption/