Australian Retailers that don’t accept cards are losing forty percent of potential customers
Two in five Australian cardholders avoid shops that don’t provide card payment options for low-value transactions
SYDNEY, Australia – 31 May 2017
The vast majority of Australians prefer using their payment cards and are avoiding shops that do not accept them. 61 percent Australian cardholders surveyed in a new study said they prefer to use a credit or debit card for most transactions over dealing with small change.
The Ipsos poll commissioned by MasterCard found that Australian cardholders are increasingly aggravated when they need to pay cash for smaller purchases or where there is a minimum spend requirement:
- 84% resent restrictions such as a fee for smaller transactions.
- 62% find it frustrating when they can’t use cards for small transactions
- 44% avoid shops that do not allow the use of cards for small transactions
“This research reinforces the need to for retailers to listen to consumers and make purchasing from them as easy as possible,” said Russell Zimmerman, Executive Director of the Australian Retailers Association said. “To stay competitive and relevant as Australians increasingly turn to payment methods other than cash, retailers of all sizes should offer customers the convenience and choice they seek.”
According to the research consumers, especially the younger generation, will not stand for restrictions and are voting with their feet by taking their patronage to where they are offered payment choice with no minimum spend limits. More than 70 per cent of 18-34 year olds say they prefer cards for small transactions and 54 per cent actively avoid shops that do not accept cards for small transactions.
The research findings are supported by the Reserve Bank of Australia’s report[1], which found that cash withdrawals from ATMs have been in a continual decline. In 2014/15, withdrawals fell by 5 per cent and the total value was down 2 per cent.
“The research found that two in five Australians will avoid shops that don’t allow them to use cards for transactions. This means retailers who impose a minimum spend for consumers using a card are potentially losing out on a staggering orty percent of customers,” said Garry Duursma, Head, Market Development and Innovation for MasterCard.
The benefits transcend the consumer through to the retailer with cashless payments being quicker, cleaner and safer:
- Quicker – with contactless technology payments are virtually instantaneous meaning faster queues and the ability to serve more customers
- Hygienic – not exchanging money means contaminated bills and coins don’t change hands
- Safe – card transactions reduces the volume of cash handling and the amount of cash in the till therefore decreasing the risk of theft.
“Australia leads the world in contactless payments with now 7 out of 10 MasterCard transactions being done in this way. This has changed consumer expectation and behaviour on card payments. Consumers have now found that a card payment is faster and more convenient than alternative payment methods. With this reality in their minds, consumers don’t understand why a retailer would restrict card payments for low value transactions. They make their frustration felt by voting with their feet,” said Duursma.
About the Research:
The study was conducted online in January 2016 using a sample of 1,010 Australian cardholders aged between 18-64 years old across Australia.
[1] http://www.rba.gov.au/publications/annual-reports/psb/2015/retail-payments-developments.html
