Why small businesses are sick of outdated banking systems and turning to fintech instead

Are you struggling with your EFTPOS machine like many other small businesses? Whether it's navigating tip reporting or waiting on delayed payments, it's clear that current solutions aren't hitting the mark.

This growing frustration with traditional payments systems shows that they’re not quite cutting it anymore and that the system needs an overhaul.

That’s where fintech and other forward thinking solutions are pushing the envelope, aiming to provide small business owners with something more: all-encompassing payment platforms that are user friendly, offer a personal touch and can be set up quickly and intuitively so you don’t miss a beat.

How outdated systems are hobbling businesses

Outdated systems aren't just a headache; they can actively hold your business back. Here are some real ways they can hinder businesses of all shapes and sizes:

• The trades. For those in the trades—electricians, plumbers, cleaners—managing cash flow effectively is a vital part of the business. It's tough when payments don't come through promptly or when clients question charges after a job's done. Add to this the stress of waiting for those paid bills to clear, while also managing payments for staff and suppliers. Tradespeople are consistently frustrated with systems that make all this admin a chore and take forever to deposit their payments.
• Hospitality. In hospitality—hotels, restaurants, bars—speed is everything. You need to process payments fast to keep cash flowing, ensuring you can consistently restock. And when taking customer payments, you can’t risk using separate terminals for different payment methods - or systems that can't quickly split bills, add surcharges or manage tips quickly. That’s bad for turnover, especially on busy nights.
• Retail. In retail, whether it’s a local bookshop, a family-owned clothing store or a specialty grocer, speedy payment processing really matters. It keeps customers happy by cutting down wait times and ensures money is in the bank quickly for things like restocking shelves and setting up promotions. If the system is slow, you’ll see the impact right away—long lines, abandoned carts and empty spots where your best sellers should be.
• Services. For anyone from lawyers to graphic designers and coaches, dealing with payment systems can be a real headache. Handling different payment methods often means dealing with steep fees that eat into what you earn. Plus, when billing gets complicated or payments drag on, it can sour relationships with clients. This means spending more time on paperwork and less on what you really want to do—helping your clients and growing your business.

FinTech to the rescue: how innovation is helping small businesses

Good news for everyone from boutique owners to cafe operators—fintech and other forward-thinking companies are making things easier. Companies, including those right here in Australia, are leading the way with quicker checkouts, smoother interface, and smarter payment options that include tipping and seamless transitions between different payment methods.

Take Tyro, for instance. It started as one of Australia’s first EFTPOS providers and according to Tyro, they’ve grown into the largest outside the big four banks. It also holds the distinction of being the first to offer a cloud-based EFTPOS service.

Now, it’s a full-fledged bank and payment powerhouse, continuously rolling out new features that help Australian business owners streamline their processes. Here’s a bit of what they offer:

• Integrated payment solutions. Tyro offers EFTPOS devices facilitating prompt transactions from multiple payment types, that allows for automatic syncing of transactions to EFTPOS and avoid costly keying errors.

• POS integration. Tyro seamlessly integrates with over 330 POS systems, allowing you to connect payment processes with existing inventory and invoicing systems.

• Customised industry solutions. Tyro offers customised solutions for your industry such as, SplitBills^[1] and Pay@Table^[1] for Hospitality and the ability to take payments in seconds to keep your queues short for the retail industry.

• Same-day settlements. Tyro offers same-day settlements for businesses with a free Tyro bank account, ensuring rapid access to funds to support smooth cash flow management.²

• $300 Visa Gift card: Now you can get a Visa Gift Card valued up to $300 when you
  switch to Tyro, plus tap into the product traits loved by over 68,000 Aussie businesses.T&Cs apply .

While Tyro isn't the only option, its ongoing innovation marks it as a standout success story in Australian fintech.

Should you switch to a new payments provider?

With modern solutions designed for swift and straightforward setup, transitioning to a new system is quicker than ever, ensuring you continue your business without skipping a beat.

So if slow transactions and cumbersome systems are regularly disrupting your business, impacting your efficiency and bottom line, then it might be time to consider a switch.

However, if your current setup manages day-to-day tasks well enough and your business isn't in the midst of rapid expansion, sticking with what you have might be your best option for now.

When you do find it’s time for a change, make sure to do your research, weigh your options carefully and finally take the opportunity to ditch that outdated tech in favour of more financial freedom.

Disclaimer:

1Tyro’s Pay@Table and SplitBills features are only available where the POS/PMS supports the integration. SplitBills is only available with Tyro’s Pay@Table feature.

² Settlements are paid 7 days a week when you meet the following eligibility criteria:

•The daily takings from your Tyro EFTPOS and/or eCommerce facility are settled into the Tyro Bank Account; and

•The Flexible Settlement Allocation feature is configured to leave a percentage of your daily takings in the Tyro Bank Account each day.

Available settlement times are from 8pm to 5am (Sydney time). Excludes Alipay, HealthPoint and funds settled directly by Afterpay, American Express, JCB and Diners Club.

* Terms and conditions