Payment methods matter, is your business getting left behind?
New research from PayPal Australia’s 2024 eCommerce Index shows payment technology has emerged as a critical differentiator in the marketplace and can help small to medium business (SMBs) stand out from the crowd.
With ongoing economic uncertainties, and increased competition, prioritising the customer experience has never been more important. Unsurprisingly, research shows 60% of Australians plan to spend less during the online sales events this year, as shoppers continue to feel the pinch, and are becoming tighter with their spending habits.[1]
For businesses, this means every potential sale counts – and reducing friction at the checkout is crucial.
Recent data reveals a compelling narrative: 59% of Australians are more likely to complete an online purchase if their preferred payment method is offered, while 36% have abandoned purchases when their preferred option wasn’t available.[2]
This means businesses may be losing out by simply not offering consumers their preferred payment option at checkout. Payment flexibility and efficiency is no longer optional – they’re essential.
Meeting evolving consumer demands by increasing payment options
“Today’s consumers expect a seamless checkout experience, regardless of how they choose to pay,” said Simon Banks, Managing Director of PayPal, Australia.
“Businesses that don’t offer choice and flexibility around payment options are increasingly finding themselves at a competitive disadvantage.”
This shifting landscape has driven many Australian SMBs to adopt comprehensive payment solutions like PayPal Complete Payments, which enables businesses to accept credit and debit cards, Australia’s most popular digital wallets including Apple Pay®, Google Pay™ and PayPal – all through a single integration. Additionally small businesses using PayPal Complete Payments can offer their customers PayPal’s award winning BNPL solution, PayPal Pay in 4 at no additional cost beyond their existing PayPal rates.
Simon notes the platform’s integration capabilities are particularly crucial for SMBs.
“This is a real game changer for Australian SMBs who can now do so much more with PayPal due to the extensive suite of tools on offer within the one integration. This comes on top of PayPal’s highly secure platform, our PayPal Pay in 4 BNPL service, and robust protection features available for businesses.”
PayPal Complete Payments is available through major e-commerce platforms including BigCommerce, WooCommerce and Adobe Commerce making it easy for small businesses on these platforms to quickly take advantage of features within the solution.
Increasing security in an era of digital fraud
With a string of cybersecurity concerns among Australian businesses, three-in-five Australians (59%) are extremely concerned about their personal or banking information being compromised. Aussies are eager to support businesses that are prioritising their security.[3]
Consumers are not alone in this. 60% of Australian businesses are concerned about keeping their customer’s sensitive information safe or secure, with most businesses (89%) taking steps to improve their information security. This is just another point of difference that may result in your businesses getting left behind.[4]
One thing SMB’s can do is lean on third party partners, enabling them to improve security features, mitigate fraud, and address the evolving needs of customers. For example, PayPal Complete Payments enables small businesses to allow their customers to securely store their payment methods in the PayPal vault for future purchases. This provides a quick and easy checkout experience for shoppers, as their payment details have been securely saved, and helps SMBs reduce card declines, drive conversion, and facilitate repeat buyers.
Customers of small businesses can also save multiple payment methods – from PayPal to cards – in the PayPal vault. Once saved, these payment methods will remain fresh via PayPal’s real-time account updater service and network tokens, which automatically updates lost, stolen or expired cards-on-file. The upside for SMBs is that we’ve seen meaningful authorisation rate improvements with Real Time Account Updater – which can help drive more conversions and sales.
The Future of SMB Payments
As consumer payment preferences continue to evolve, Australian SMBs are increasingly recognising payment technology isn’t just about transactions – it’s about offering choice and flexibility, building customer loyalty and driving business growth. Those who adapt their payment capabilities accordingly are positioning themselves for success in an increasingly competitive digital marketplace.
Learn more about PayPal for business at www.paypal.com/au/business.
About the research:
PayPal 2024 eCommerce Index. The research was produced by PayPal Australia Pty Limited, based on an online study conducted by Fifth Quadrant with n = 1,005 consumers and n = 493 businesses. Australians aged 18 – 75. The sample was weighted by age, gender and location to ensure data was nationally representative. The sample was weighted by age, gender and location to ensure data was nationally representative. The business research consisted of a sample of n = 493 decision makers within Australian businesses. All businesses had to sell partially or wholly to consumers, and partially or wholly online. Quotas and the sample were set on turnover and location. The research was in the field from July to August 2023.
PayPal 2024 Online Sales research was produced by PayPal Australia, based on an online study conducted by PureProfile with n=1000 sample size. The consumer research consisted of a sample audience of Australians aged 18-75, and was weighted by age, gender and location to ensure data was nationally representative. Quotas and samples were set on turnover and location. The research was fielded from 5 April to 10 April 2024.
[1] 2024 Online Sales research. Fifth Quadrant Research, commissioned by PayPal.
[2] 2024 eCommerce Index. Fifth Quadrant Research, commissioned by PayPal.
[3] PayPal eCommerce Index 2024
[4] PayPal eCommerce Index 2024
