The Visa Insights: Australia’s Fast Future report suggests real-time payments and person to person (P2P) payments will reach 10.1 trillion by 2023 led by demand from the gig economy.
The report suggests Australian workers want to be paid within minutes of doing a job and real-time payments could be the answer. Visa predicts by 2023, two-thirds of Australians will be using real-time payment solutions for a variety of payments including person-to-person funds disbursements, and merchant settlements. This equates to 3.1 billion transactions per year.
Axel Boye-Moller, Visa Head of Product for Australia, New Zealand and South Pacific, said while payments from consumers to merchants authorised in real-time have been the norm for many years in retail environments, there are still scenarios where payments aren’t yet instant.
“Real-time payment solutions will change this, enabling businesses and governments to disburse funds faster and all Australians to send money to friends and family in an instant, whether at home or abroad.”
The report suggests the biggest opportunities lie within the gig economy, which currently employs up to 4.9 million Australians. 45 per cent of Australians say they would consider doing gig economy work to supplement their salary over the next 12 months.
While extra income is positive, gig economy workers would like to receive payments faster.
54 per cent of gig economy workers say the delay in getting paid is one of the hardest parts of their job and 53 per cent say faster access to incomes would substantially improve their lifestyle.
Visa’s report also reveals a strong demand for real-time payments to make paying friends and family back more convenient:
A quarter of Australians admit to forgetting to pay back their friends or family after borrowing money, while one in six (16 per cent) say they could not be bothered as the process is “too arduous”.
42 per cent of Australians have money owed to them by friends or family and 44 per cent say they find it too awkward to follow up.
48 per cent would pay their friends or family back immediately if they could do so via a messaging platform or app.
“As Australians, our lifestyles are changing. Many of us have family and friends living abroad, the way we work is evolving, and naturally, our expectations are shifting too. We want secure, convenient and fast ways to pay and be paid, wherever we are.
“Real-time payments solutions will enable a new wave of experiences. And it’s important for businesses to take note, as these solutions will be increasingly critical to building and retaining loyalty from customers and employees,” said Boye-Moller.