‘Falling behind’: Small business risks revenue with old tech, while quarter of Aussies still use cash
A new report has made surprising findings about the use of cash and the number of businesses accepting cash in Australia.
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A quarter of Australians still rely on cash when purchasing from small businesses, a new report has found.
A survey by small business accounting outfit Xero found 25 per cent of Australian shoppers still rely on cash and cheques when making a purchase
But 41 per cent of consumers rarely use cash or cheques, and only do so when a business asks for it.
Xero’s Australian sales director Theo Konstantas said small businesses and customers were disconnected over how to pay.
Businesses were hesitant to adopt Apple Pay and Google Pay, and even traditional debit and credit facilities, he said.
“Aussie consumers are increasingly embracing digital payment methods, particularly younger generations.
“However, small businesses don’t seem to be meeting their customers where they are.”
“With a drive to digital, small businesses that don’t meet consumer preferences might find themselves falling behind,” Ms Konstantas said.
Only 55 per cent of Australian small businesses offer debit or credit as a way for customers to pay.
More than two-thirds (68 per cent) of small businesses want bank transfers, and cash is the second most common payment method preferred by the proprietor, at 59 per cent.
Xero payments senior vice president, Bharathi Ramavarjula, said businesses who adapted would benefit.
“Understanding how different consumers prefer to pay and giving them the flexibility to pay the way they want, will help small businesses get paid faster and grow their revenue,” he said.
Originally published as ‘Falling behind’: Small business risks revenue with old tech, while quarter of Aussies still use cash
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