In today’s digital world, payments are supposed to be seamless, quick, and—most importantly—affordable. Yet, Australians are still burdened with the infamous card surcharge. While a lot of us swipe our cards without thinking, there’s a hidden cost attached to that convenience. But change is on the horizon.
The Promise of Real-Time Payments
Real-time payments, an emerging solution already common in many countries, could offer the answer. Instead of waiting for funds to transfer over a day or two, real-time systems allow money to move instantly between accounts. It’s not some distant dream—Australia already has the technology in place. PayID and PayTo are the country’s homegrown tools for facilitating these swift transactions. And despite the clear benefits, they’re not being used to their full potential.
Why Haven’t We Switched Yet?
Now, you might be wondering, “Why haven’t we all switched over to these faster methods already?” It’s a good question, and the answer isn’t so simple. For starters, most of us are just too used to card payments. They’ve been the norm for decades, and the idea of switching feels like an unnecessary hassle. But when you take a step back and look at the global landscape, the picture starts to change.
Global Success Stories
Countries like India and Brazil have fully embraced real-time payments, with systems like UPI and PIX becoming household names. These systems are not only free for consumers but also save small businesses significant amounts in fees. The money moves directly from one account to another, cutting out the middlemen who typically charge hefty commissions. It’s cheaper, it’s faster, and it’s secure. The question then becomes: why isn’t Australia leading the charge?
Part of the reason is that these systems are still relatively new in Australia. PayID, for instance, has been around for a few years but has only recently gained traction, explains The Conversation. The Reserve Bank of Australia is working on initiatives to reduce card surcharges, but there’s a feeling that more needs to be done to push real-time payments into the spotlight.
The Potential Savings
The potential savings are massive. Every year, Australians pay billions in card surcharges. Shifting a portion of that business to real-time systems would not only save consumers money but could also give small businesses a much-needed break. It would mean fewer surcharges and lower costs for everyone involved.
In the end, the question isn’t whether real-time payments are the future—it’s more about how quickly we can make them the present. Sure, there will be some growing pains, but with the right encouragement, it could very well be the shift Australians have been waiting for.
