Last editedFeb 20232 min read
The retail industry has undergone a digital revolution in recent years, which means that business owners have more payment collection options than ever. The aim of any retail payment system is to manage transactions for a quick, efficient transfer of funds. From mobile payments to retail payment trends like BNPL, many of these put technology to clever use. Here’s a closer look at the top retail payment solutions for Australian businesses
1. Custom POS system
Traditionally, retail business owners have relied on a point-of-sale (POS) system. While this used to consist of a cash register, today it includes a combination of hardware, such as card readers, and software, such as payment gateways. The best POS systems are fully customisable. Typical features include the ability to split payments between multiple payment methods. For example, if two shoppers are splitting the cost of a gift for a mutual friend, a custom POS system will allow the cost to be spread across more than one credit card. Some retailers might also look for systems that can handle partial payments, recurring payments, and credit plans. Flexibility is key.
2. Buy now, pay later (BNPL)
BNPL, or buy now, pay later, is one of Australia’s top retail payment trends. Services like Afterpay and Klarna allow retail shoppers to split the cost of their purchase across several instalments over time. A typical BNPL set-up is four equal instalment payments, all with low or zero interest rates. For business owners, offering BNPL encourages customers to make bigger purchases. Because they can spread the cost without paying costly interest fees, they’re more likely to feel confident with big-ticket items like electronics or luxury apparel.
3. Card payments
Debit and credit card payment solutions for retail businesses remain some of the most popular options out there. With more customers going cashless, cards remain a trusted alternative both online and off. You can choose any standard payment gateway to process card transactions but be sure to compare your fees carefully. Average credit card processing fees can vary between 1 and 3% of the total sale, which adds up over time. It’s also important to make sure that your payment gateway is fully compliant with all security and data protection laws, including PCI DSS regulations.
4. Mobile payments
Smartphone-enabled payment methods are some of the best retail payment solutions out there. These take on many forms, including digital wallets like Apple Pay as well as in-app banking transfers and SMS payment services. Quick, easy, and contactless, they’re particularly popular with retail shoppers who expect an efficient checkout process. While they’re convenient for customers, mobile payments also carry benefits for business owners. Merchants benefit from improved cash flow as well as a treasure trove of customer data for analysis. You can boost engagement by tracking customer data like buying patterns and location.
5. Bank payments
Finally, bank payments round out our list of top retail payment solutions. Paper cheques have been phased out in favour of convenient bank transfers and direct debit payments. These move money electronically from one bank account to another, a smooth, frictionless process. Bank transfers are beneficial for larger big-ticket transactions as well as recurring payments due to their security. In fact, switching from cards to bank payments offers numerous benefits for retailers. You not only save on expensive card fees, but you’ll have far less chance of failed payments.
GoCardless helps facilitate direct debit payments, allowing your business to take the lead. We’re also working on a PayTo solution, a new way for your business to initiate real-time payments from customer bank accounts. Reducing both credit card fraud and fees, it’s one of the best options out there for today’s retail businesses.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.