Small Business Payment Trends: 3 Critical Insights

At the recent Small Business Australia Conference, Novatti had the privilege of presenting on the ever-evolving digital payment solutions for small businesses and how these enterprises can adapt to new customer preferences and technology trends.

Adapting to Customer Payment Preferences: The Digital Shift

• How do Customers Want to Pay Now, and What are the Trends?

The way customers prefer to make payments is undergoing a significant shift. The reduction of cash as a tender type is a clear trend, with more people opting for digital and contactless payment methods. This transformation requires small businesses to plan for the future by adapting to these changing payment preferences. With over 60% of the global population projected to use digital wallets by 2026, it’s evident that digital payments are here to stay.

Maintaining Revenue Continuity: Solutions When Systems Fail

Avoiding Revenue Loss When Systems Go Down

A primary concern for businesses is the potential revenue loss when their Point of Sale (POS) and IT or payment systems experience downtime. To address this, we introduced the concept of SoftPOS (Software Point of Sale) and mobile phones as backup payment devices.
SoftPOS technology allows businesses to turn their phones into payment acceptance devices, offering secure contactless payment processing with PIN protection without additional hardware. This redundancy ensures that businesses can continue to receive payments even when their primary payment providers experience issues.

Streamlining Payment Processes: Integration and Efficiency

Reducing Payment Costs and Reconciliation Time

We emphasised the importance of integrating payment systems with existing accounting software to help businesses reduce payment costs, streamline reconciliation, and improve operational efficiency. The integration of payment reconciliation with accounting packages, such as the partnership between Novatti and Reckon, provides a seamless way to reconcile daily transactions. This integrated approach saves time and minimises fees and charges associated with traditional reconciliation processes.
In addition, we discussed the emerging trend of fully integrating payment reconciliation with accounting software and its benefits for businesses. These integrated solutions, like Novatti’s partnership with Reckon, offer end-of-day reconciliation regardless of the payment terminal used, ensuring businesses can efficiently manage their finances.

Embracing New Technologies: The Path Forward for Small Businesses

As the digital payment landscape continues to evolve, small businesses must stay informed about changing customer preferences, embrace new technologies like SoftPOS, and adopt integrated solutions to optimise their payment processes. By adapting to these trends, businesses can enhance their financial efficiency, maintain revenue continuity, and meet the evolving demands of their customers.

The digital payment landscape is rapidly changing, and small businesses must be prepared to adapt and innovate to remain competitive in this evolving marketplace. If you’re looking for guidance or solutions in navigating this ever-changing landscape, please feel free to contact Stephen Leeds, Head of Business Development – Payments AU/NZ, at [email protected].
A copy of the presentation slides is available here.