Post-lockdown pain continues with increase in card transactions
While it’s more convenient for consumers to use digital wallets and contactless transactions, Smartpay reports merchants are seeing their card transaction fees increase as well as trying to survive post-lockdown.
Since the initial lockdowns in 2020, Smartpay, Australia and New Zealand’s largest independent EFTPOS provider, reports merchants card transactions have jumped 20 per cent compared to pre-lockdown transaction figures in 2019.
This overall increase in transactions indicates the shift to a cashless society, one that COVID-19 has helped speed up.
“This transaction data indicates merchants have started to rebound after many struggled through the Covid-19 lockdowns in 2021,” says Marty Pomeroy, Chief Executive Officer at Smartpay.
“But the increase in card usage equates to an increase in merchants’ fees, adding to costs at a time where saving costs is crucial to small to medium sized businesses.”
Marty says stabilising cash flow, marketing and recruitment are just some business tips that businesses could invest their card transaction fee savings in, to maximise their business for 2022.
Luke, the owner of La Deli and Queen Victoria Market, notes that prior to the lockdown, only 20 per cent of his customers were paying with a card, now it’s 95 per cent and many customers are using contactless digital wallets.
“All of a sudden my costs went up and I was forced to raise my prices to cover this increase which I really did not want to do,” says Luke.
Smartpay’s Zero Cost Eftpos solution provided a great alternative for Luke.
“By passing on a small surcharge to my customers when they pay by card, I was able to keep my prices the same,” he says.
“The savings are helping to pay for other bills, which is critical for my cash flow. In the future we plan to reinvest the savings into the business.”
For more information visit Smartpay.
Source: Bean Scene Mag