Thousands of Australian establishments are switching from traditional EFTPOS service providers in 2023.
In the rapidly evolving world of business, a significant shift is underway in Australia as more and more companies are ditching their outdated EFTPOS providers in favour of modern alternatives. This transition is driven by a variety of factors, including cost savings, digital transformation, regulatory advancements, market growth, and the increasing demand for seamless, flexible payment experiences.
One of the key drivers of this trend is cost savings. The adoption of zero-cost EFTPOS models is on the rise, with businesses reporting substantial savings on transaction fees. For instance, some businesses are saving around AUD 6,800 annually, a compelling reason for small businesses to adopt such models[1]. Additionally, reductions in wholesale fees, such as the 22% drop announced for the domestic eftpos network, further incentivize businesses to seek cost-effective alternatives[1].
Another significant factor is the digital transformation and the rise of embedded payments. The shift towards integrated and unified solutions is strong, with embedded payments, where payment processing is integrated into software, gaining traction. This approach reduces the need for standalone terminals, simplifying operations and lowering costs[3]. SaaS-based POS solutions are becoming more popular, with a projected 14% CAGR through 2027, driven by SMEs seeking streamlined workflow solutions and embedded payment capabilities[3].
Regulatory support for fintech innovation and open banking initiatives indirectly promotes the adoption of modern payment systems, encouraging competition and innovation[2]. The integration of payment solutions into broader enterprise resource planning (ERP) systems enhances operational efficiency and compliance for businesses, making them more attractive than legacy systems[3].
The Australian payments market is expanding rapidly, with a projected value of USD 2.29 trillion by 2030[1]. This growth, combined with high demand for efficient digital payment solutions—nearly 80% of adults made at least one online purchase in 2023—drives businesses to adopt modern payment technologies[1].
Modern EFTPOS providers offer a host of advantages over their legacy counterparts. They provide centralized management of transactions across multiple channels, from physical POS to e-commerce, simplifying operations, reducing data fragmentation, and enabling businesses to make strategic, real-time decisions[4]. They also offer integrations with accounting software like Xero or MYOB, making financial management more efficient.
When choosing a new EFTPOS provider, it's essential to confirm compatibility with existing POS or software tools. Modern EFTPOS providers, such as Smartpay, offer a plug-and-play solution with no lock-in contracts and transparent pricing. They also offer same-day or instant settlement, eliminating the need to wait days to see takings.
Customers increasingly prefer quick and easy tap-and-go transactions, necessitating smarter tools for business owners. The reporting side of legacy EFTPOS systems is often manual and time-consuming, a stark contrast to the real-time, cloud-based reporting offered by modern alternatives.
Switching to modern EFTPOS alternatives can reduce admin work, stress, and provide more control over a business's operations. The EFTPOS shake-up is happening now due to evolving business needs and customer expectations for smooth, fast payment options. Today's smart business tools are accessible to businesses of all sizes, making modern EFTPOS providers a viable option for start-ups and large enterprises alike.
Thousands of Australian businesses have already made the switch, leaving behind the clunky contracts, hidden fees, and outdated terminals that don't integrate well with cloud-based business tools that characterise legacy EFTPOS providers. The trend towards modern EFTPOS providers is set to continue as businesses seek to stay ahead in the digital age.
[1] Source: RFi Group (2021), "Australian SME Payments Survey 2021" [2] Source: Australian Payments Council (2020), "Open Banking Implementation Entity Annual Report 2019-2020" [3] Source: Juniper Research (2020), "Future of Retail Payments: Contactless, Mobile, POS & In-Store Tech Market Forecasts" [4] Source: Smartpay (2021), "The Future of Payments: A Guide for Business Owners"
- With cost savings being a primary concern, businesses are favoring modern EFTPOS models that offer zero-cost transaction fees, potentially saving around AUD 6,800 annually.
- In the realm of technology and business, the digital transformation is leading to the rise of embedded payments, an approach that simplifies operations and reduces costs by integrating payment processing into software.
- The integration of modern payment solutions into Enterprise Resource Planning (ERP) systems is encouraged by regulatory support for fintech innovation and open banking initiatives, enhancing operational efficiency and compliance for businesses.
