New research shows payment technology has emerged as a critical differentiator in the marketplace and can help small to medium business (SMBs) stand out from the crowd.

With ongoing economic uncertainties, and increased competition, prioritising the customer experience has never been more important. Unsurprisingly, research shows 60 per cent of Australians plan to spend less during the online sales events this year, as shoppers continue to feel the pinch, and are becoming tighter with their spending habits.

For businesses, this means every potential sale counts – and reducing friction at the checkout is crucial.

Recent data from the PayPal 2024 eCommerce Index reveals a compelling narrative: 59 per cent of Australians are more likely to complete an online purchase if their preferred payment method is offered, while 36 per cent have abandoned purchases when their preferred option wasn’t available.

This means businesses may be losing out by simply not offering consumers their preferred payment option at checkout. Payment flexibility and efficiency is no longer optional – they’re essential.

Meeting evolving consumer demands by increasing payment options  

“Today’s consumers expect a seamless checkout experience, regardless of how they choose to pay,” says Simon Banks, managing director of PayPal, Australia.

“Businesses that don’t offer choice and flexibility around payment options are increasingly finding themselves at a competitive disadvantage.”

This shifting landscape has driven many Australian SMBs to adopt comprehensive payment solutions like PayPal Complete Payments, which enables businesses to accept credit and debit cards, Australia’s most popular digital wallets including Apple Pay, Google Pay and PayPal – all through a single integration.

Additionally small businesses using PayPal Complete Payments can offer their customers PayPal’s award-winning BNPL (buy-now-pay-later) solution, PayPal Pay in 4 at no additional cost beyond their existing PayPal rates.

Banks notes the platform’s integration capabilities are particularly crucial for SMBs.

“This is a real game changer for Australian SMBs who can now do so much more with PayPal due to the extensive suite of tools on offer within the one integration,” he says.

“This comes on top of PayPal’s highly secure platform, our PayPal Pay in 4 BNPL service, and robust protection features available for businesses.”

PayPal Complete Payments is available through major e-commerce platforms including BigCommerce, WooCommerce and Adobe Commerce making it easy for small businesses on these platforms to quickly take advantage of features within the solution.

PayPal Complete Payments enables small businesses to allow their customers to securely store their payment methods in the PayPal vault for future purchases. This provides a quick and easy checkout experience for shoppers, as their payment details have been securely saved, and helps SMBs reduce card declines, drive conversion, and facilitate repeat buyers.

Customers of small businesses can also save multiple payment methods – from PayPal to cards – in the PayPal vault. Once saved, these payment methods will remain fresh via PayPal’s real-time account updater service and network tokens, which automatically updates lost, stolen or expired cards on file.

“The upside for SMBs is that we’ve seen meaningful authorisation rate improvements with Real Time Account Updater – which can help drive more conversions and sales,” says Banks.

The future of SMB payments

“As consumer payment preferences continue to evolve, Australian SMBs are increasingly recognising payment technology isn’t just about transactions – it’s about offering choice and flexibility, building customer loyalty and driving business growth,” says Banks. “Those who adapt their payment capabilities accordingly are positioning themselves for success in an increasingly competitive digital marketplace.”

Learn more about PayPal for business at www.paypal.com/au/business