Up to $10.1 trillion could be processed via real-time payments solutions each year in Australia by 2023, according to a report from Visa. And there is sufficient demand for it, with gig economy workers wanting to be paid “within minutes” of completing a job.
Based on research conducted by Telsyte, Visa Insights: Australia’s Fast Future, by 2023, two-thirds of Australians will be using real-time payment solutions for a variety of payments including person-to-person (P2P), funds disbursements, and merchant settlements. This equates to 3.1 billion transactions per year.
Telsyte’s forecasts represent total real-time payment volumes over the next five years, taking into consideration the growth and uptake of current real time payment solutions, as well as new future use cases.
“While payments from consumers to merchants authorised in real-time have been the norm for many years in retail environments, there are still scenarios where payments aren’t yet instant,” said Axel Boye-Moller, Visa Head of Product for Australia, New Zealand and South Pacific.
“Real-time payment solutions will change this, enabling businesses and governments to disburse funds faster and all Australians to send money to friends and family in an instant, whether at home or abroad.”
On-demand salary for on-demand services
The report highlights the opportunity provided by real-time payments solutions to the growing gig economy, made up of 4.9 million workers in Australia and predicted to employ 6.7 million in 2023.
In fact, 45 per cent of Australians say they would consider doing gig economy work to supplement their salary over the next 12 months.
While extra income is positive, gig economy workers would like to receive it faster. The report found:
● 54 per cent of gig economy workers say the delay in getting paid is one of the hardest parts of their job and 53 per cent say faster access to incomes would substantially improve their lifestyle.
● 34 per cent would pay a small fee to receive funds faster and 52 per cent would switch employers if they could get paid more quickly.
● 65 per cent of gig economy workers would like to get paid within 24 hours of completing a task or service, and 59 per cent would like to be paid within minutes of finishing the job.