Over half (54%) of Australian small-to-medium enterprises (SMEs) do not accept chip and PIN credit and debit payments despite the fact that signature verification in the country is being phased out, according to a new study conducted by PayPal Australia.
The study found that 36% of SMEs who currently accept credit card payments do not accept chip and pin payments.
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Surprisingly, 64% of of the owners and managers of SMEs didn’t know what ‘chip and PIN’ meant despite the fact that in less than two months on August 1, chip and PIN technology will be mandated across all cards and payments terminals in Australia.
Andrew Rechtman, PayPal Australia senior director of SMB, retail and strategy said: "We need to ensure that Australian small businesses are armed with the technology and resources needed to adapt to the new payment landscape and can keep up with the shifts in consumer behaviour at the checkout."
The study also indicated there will be a decline in cash payments, with six in 10 SMEs agreeing that cash-only businesses will be a thing of the past.
Also, nearly 87% SME owners who participated in the survey admitted that customer prefers to pay using their credit and debit card for much smaller purchase amounts.
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By GlobalData
