Unlocking Growth: How Fintech Payment Solutions Empower Small Businesses
31.01.2025 - 06:33
Small businesses have been among the biggest beneficiaries of the transition to fintech-powered modern payments systems, with the average benefits across all fintech solutions totalling $9 billion as a result of their adoption. Of the $9 billion in net benefits, $8 billion has come from increased revenues by adopting these services, and $1 billion from reduced costs. Notably, over 30% of businesses reported an increase in revenue of over 2.5% as a result of adopting a fintech payment solution.
Australia’s evolving payment landscape: five key trends shaping the future
Australia’s payment system has seen rapid and remarkable change over the past decade. Driven by technological innovation and a desire for cost-effective solutions, merchants across the country are rethinking how they accept and process payments. Below are the five key trends reshaping the payments space:
- Rapid Adoption of Mobile Wallets
- Entry of Fintech Payment Service Providers (PSPs)
- Introduction of Real-Time Payments Through the New Payments Platform (NPP)
- Exponential Growth of Buy-Now-Pay-Later (BNPL) Platforms
- Rise of Fintechs for Cross-Border Payments
Moving beyond traditional banks
The shift away from traditional banking providers is largely due to a need for broader services, cost efficiencies, and cutting-edge payment solutions. In fact, approximately 39% of surveyed merchants reported switching from one of the Big-4 banks to a non-bank provider. This trend underscores the growing appeal of Fintech offerings, which often provide more user-friendly services than legacy banks.
Fintech payment solutions are widely used by small businesses across all size categories. ‘In-person’ payment solutions have the highest penetration of all payment types. ‘A2A’ payment solutions have similar adoption rates across small business merchant sizes, largely due to the growing adoption of PayID. These A2A solutions offer merchants lower cost transactions and faster settlement.
Benefits for Small Businesses
The transition to fintech payment platforms has especially benefited small businesses, with the average benefits across all fintech solutions totalling $9 billion as a result of their adoption:
- Of this $9 billion, $8 billion is attributed to increased revenue, while $1 billion comes from cost savings.
- Nearly 30% of businesses reported revenue growth exceeding 2.5% after introducing fintech payment solutions.
Rehan D’Almeida, CEO, FinTech Australia said: “This report finally quantifies the power of fintech to transform our economy. We frequently hear that small business is the engine room of the Australian economy. Well, fintech is fuelling that engine room and directly contributing to its growth.”
Overcoming Barriers to Adoption
Despite the clear advantages, some small merchants remain hesitant to go digital due to concerns about:
- Security
- Privacy
- Setup or operational costs.
Addressing these issues is crucial for broadening fintech adoption. Enhanced education around cybersecurity, transparent cost structures, and strong support from payment service providers can help build trust and encourage more businesses to transition to digital methods.
Embracing the Future of Payments
For those merchants who have already embraced fintech solutions, the results are undeniable: higher customer satisfaction, reduced overheads, and increased revenue. As Australia’s payment landscape continues to evolve, staying informed and open to innovative platforms could be the key to thriving in an increasingly competitive market.
Read the full report here.
Read our latest posts
The Fragmentation Tax
Australian retailers operate across a patchwork of inconsistent state and territory regulations that, left unchecked, will cost the economy $26 billion and households $9.4 billion over the next decade. Commissioned by the Australian Retail Council, this Mandala report finds that regulatory fragmentation in retail - Australia's second-largest employer, generating $649 billion in economic activity annually - is compounding the country's productivity crisis at the worst possible time. The report identifies specific issues in transport and logistics, and packaging and waste as priority areas for reform, where harmonisation alone would inject up to $1.65 billion into the economy over 10 years. It recommends the Federal Government use its National Competition Policy framework to drive reform - including a $260 million increase to the National Productivity Fund, a new National Harmonisation Council, and a mandate that Regulatory Impact Statements explicitly quantify fragmentation risks.
23 Feb, 2026
Reforming Victoria's Windfall Gains Tax
Victoria's Windfall Gains Tax (WGT), introduced in July 2023, has compounded a decade of new and increased property taxes that have made Melbourne the most costly major city in Australia for development. Commissioned by the Property Council Victoria, this Mandala report finds that developer taxes and charges now account for 18% of total costs on Melbourne developments - double the rate of Sydney - and that the average WGT liability pushes project returns below the viability threshold. The analysis estimates that removing the WGT could unlock $1.4 billion in additional annual investment, support 2,700 jobs and deliver the equivalent of 3,100 new homes per year by 2030. The report also presents a suite of targeted reforms across financial relief, predictability, and policy alignment that would restore investor confidence while balancing the government's revenue objectives.
23 Feb, 2026
Restoring affordable access to specialist care in Australia
In this report, Mandala and Private Healthcare Australia (PHA) studied the affordability of specialist care in Australia. We find that specialist fees are rising, exacerbating cost-of-living pressures on consumers and worsening the affordability of healthcare. We propose a targeted package of measures to improve consumers' ability to access high-quality care, of their choosing, at fair and transparent costs.
3 Feb, 2026
Critical Minerals Strategic Reserve Design
Mandala's latest report for the Association of Mining and Exploration Companies (AMEC) sets out an industry-informed approach to implementing Australia’s Critical Minerals Strategic Reserve, with a focus on rare earths critical to national security and the energy transition. Bringing together 10 Australian rare earth developers, and drawing on international precedents and economic analysis, the report recommends a commercially viable and fiscally sustainable model to support new investment in Australia’s rare earths sector while managing risk to taxpayers.
12 Jan, 2026