Global payments technology company Visa Inc. recently released a report revealing that up to $10.1 trillion could be processed via real-time payments solutions each year in Australia by 2023 and there is sufficient demand for it, with gig economy workers wanting to be paid “within minutes” of completing a job.
Based on research conducted by Telsyte, Visa Insights: Australia’s Fast Future, predicts that by 2023, two-thirds of Australians will be using real-time payment solutions for a variety of payments including person-to-person (P2P), funds disbursements, and merchant settlements. This equates to 3.1 billion transactions per year.
Telsyte’s forecasts represent total real-time payment volumes over the next five years, taking into consideration the growth and uptake of current real-time payment solutions, as well as new future use cases.
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 highlighted the opportunity provided by real-time payments solutions to the growing gig economy, made up of 4.9 million workers in Australia and predicted to employ 6.7 million in 2023. In fact, 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 it faster. The report found 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. 52 per cent would switch employers if they could get paid more quickly. About 65 per cent of gig economy workers would like to get paid within 24 hours of completing a task or service, while 59 per cent would like to be paid within minutes of finishing the job.
Australians are also found to be security conscious when it comes to adopting P2P services, with 85 per cent saying they would want to know the service is secure and their data is being protected. More than three in four (78 per cent) say it would be important to have a trusted payments brand providing the service, and 64 per cent say their bank logo being visible would make them feel comfortable.
“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,” said Boye-Moller.
“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.”