Ping. Ping. Ping. That’s the sound of Sydney's Boxing Day sales as digital payments ring out across Aussie shopping centres – with hardly a note in sight. Tyro’s latest Big Time Business Report, which surveyed more than 500 small and medium enterprises (SMEs), revealed that 55 per cent of businesses are considering the idea of going cashless in 2025, partly to cut admin costs. Hospitality businesses like restaurants and bars, as well as retail businesses, are even more likely to go cashless than other industries. And 16 per cent of Australian businesses have already gone fully cashless in 2024, with hospo and retail leading the charge.
“With almost 80% of payments in Australia made by card, and the cost benefit that comes with streamlining payment operations, it’s not surprising that more businesses are interested in going cashless,” says Tyro CEO, Jon Davey.
Rising costs are putting the squeeze on profit margins – 48 per cent of small to medium enterprises (SMEs) surveyed for the report said they have hiked their prices in the last year to keep up with climbing supply costs.
Some have absorbed the financial strain or switched suppliers to avoid passing the pain onto customers. As the saying goes, time is money. Financial admin is a big time suck for business owners who know they need to modernise how they do business to stay competitive.
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No surprises here: consumers are feeling the pinch, too. They are getting increasingly agitated – and rightly so – and voicing their frustrations over price increases, tap-and-go charges, and the challenges faced by those less digitally savvy. To stem the criticism, SME owners are pushing for government support – tax breaks, simpler regulations and better access to funding are top of their wish lists.
About half of restaurant and bar businesses also say mobile payment solutions have been the biggest area of improvement for their customer experience – especially mobile payment solutions, followed by things like online ordering, loyalty programs and apps, and paying from the table.
In a world of rising costs, digital wallets and a future that looks increasingly cashless, Aussie retailers will need to adapt or they will go out of business. But there is optimism – 81 of SMEs stated they are confident they’ll be in business this time next year, and 40 per cent expect to see growth.
For the sake of all of us, let’s hope cozzie livs eases up in 2025.
You can see the full report over here.
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