One of the biggest developments in Australia’s payments market is set to launch in February. Yet the majority of the nation’s tradies have no idea of what’s coming, bringing into question whether the general public and business owners have been sufficiently informed of the new changes.
With the launch date fast approaching, ServiceSeeking.com.au surveyed 1,500 of its tradie business members to find out how the NPP will impact the industry. Among the key findings were:
- 62.1% of tradies are not aware of the upcoming NPP system.
- 51% of tradies said instant payments such as the NPP will encourage them to move away from cash – which is welcome news for the Australian Tax Office who recently warned consumers against paying tradies in cash.
- 51.4% of tradies said bank delays in processing payments had negatively affected their business experience in the past.
A clear generation gap in attitudes toward cashless payments:
- Physical cash is still favoured by over 50% of Generation X and Baby Boomer tradies.
- 62% of younger Millennial tradies prefer online payments but 49.6% have suffered negative experiences due to delays.
A world-leading innovation, the New Payments Platform (NPP) will enable free, instant transfers between bank accounts, 24/7, 365 days a year. For tradies, this means bills and payments can be settled on the spot once a job has been completed.
In managing their business, 36% of tradies said that they struggled to keep up with their bookkeeping and paperwork duties and invoicing was voted by 33% of respondents as the task they most wanted to be made easier. The NPP has created a solution that allows invoices and additional documents to be attached to payments, and introduces ‘PayID’ to replace BSB’s and account numbers with a single identifier: either an email address or mobile number.
‘The NPP is the biggest change to how we’ll make direct payments for local services that’s completely flying under the radar’ says ServiceSeeking CEO Jeremy Levitt. ‘Tradies have always preferred cash payments in order to avoid fees and delays – but the NPP will be a game changer, and may even threaten the viability of third party payment platforms that take a commission for their services”.
The survey results are below: