Money

No more card charges: how to switch to fee-free payments now

Published

1 month ago

August 31, 2025

The Conversation

No more card charges: how Australians can switch to fast, fee-free payments right now

Proxyclick Visitor Management System/Pexels, CC BY

Vibhu Arya, University of Technology Sydney; Renu Agarwal, University of Technology Sydney, and Wen Helena Li, University of Technology Sydney

Every day, when Australians tap their card at a cafe checkout or hit pay on an online order, there’s often an unpredictable, frustrating extra cost: the card surcharge.

Australians pay more than $1.2 billion every year in card surcharges, with 88% of our payments still made using cards.

That high cost is why the Reserve Bank is working on how to reduce card surcharges. A final decision is due later this year.

Yet if you visit many parts of Asia, Africa or South America, you’ll discover there are cheaper alternatives to paying by card – saving money for shoppers and businesses.

Global growth in real-time payments

Real-time payments, sometimes also known as instant or fast payments, move money between bank accounts instantly. It’s often as simple as scanning a QR code, or using a mobile number or email.

For example, you place a coffee order – but instead of tapping a bank card, you use your phone to scan a QR code at the counter to pay.

Crucially for the cafe, the money lands instantly into their account. In contrast, tap to pay cards funds usually land in a business’s account a day or two later.

In countries as diverse as India, Brazil, China, Malaysia, Thailand, Indonesia, Nigeria, Bangladesh and advanced economies such as Hong Kong and Singapore, real-time payments for everyday purchases are already common.

For consumers, it’s fee-free. And particularly for small businesses, it’s much cheaper than cards.

The reason it’s cheaper is simple: there are no intermediaries taking a share of fees, with the money moving directly between two bank accounts.

How it’s done worldwide

In India, the most popular way to pay is UPI, with more than 600 million real-time transactions a day.

In China, the most popular ways to pay are Alipay and Wechat wallets, which run on QR codes linked to the user’s bank accounts. But the underlying infrastructure is via real-time payments. China has more than 1 billion real-time transactions a day.

In Brazil, the most popular way to pay is PIX, with more than 75 million transactions a day. It’s free for consumers – and up to ten times cheaper for businesses than cards.

In Singapore, PayNow remains a popular way to pay, free for both consumers and businesses.

Yet in other countries, including Australia, New Zealand, the United States and United Kingdom, card payments still dominate.

Can Australians make real-time payments now?

Yes – but we’re doing it far less than we could.

You can make instant transfers through PayID and pre-approved debits via PayTo.

PayID works by letting you use your mobile number, email address, Australian Business Number (ABN) or organisation identifier to receive fast payments to your bank account. You can have multiple PayIDs, each linked to a different account.

PayTo is different. It works via one-time authorisation, where the consumer allows a business to draw from their account, up to a certain amount and time period. Think of it as real-time payments for recurring payments, such as Spotify, Netflix or gym memberships.

Australia has more than 27 million registered PayIDs, with more than 5 million daily transactions.

How to save Australians millions a year

With PayID and PayTo, money lands in a business’s account instantly. The cost is tiny, projected to fall to four cents a transaction by this year.

Every day, Australians make roughly 45 million card transactions. If even some of those transactions shifted to PayID or PayTo, small businesses could save millions in fees – and customers would be spared a big share of that $1.2 billion in card surcharges.

However, a 2025 Nielsen/Westpac survey found that while 99% of Australian business leaders recognised the need to move to real-time payments, only 25% had started that transition.

Why are real-time payments part of daily life in some countries, but not here? Preliminary research points to one factor above all: the central bank’s role. In Australia’s case, that would mean the Reserve Bank stepping in to do more.

Instead of spending so much time and resources on card surcharges, the Reserve Bank should do more to boost the use of real-time payments.

Are real-time payments riskier?

Real-time payment QR codes overseas are secure, and businesses do not see or retain the customer’s phone number or email.

Unlike card payments, there is no risk of losing your card or card numbers. A payment can only be made via scanning a QR code and authorising it.

Of course, risks remain. Whether using a card or a real-time payment, being aware of the risks of fraud or scammers remains important.

The Australian Banking Association has recommended more Australians use PayID to protect themselves from scams or mistaken payments.

Cutting costs for shoppers and business

Australian small businesses currently get a raw deal. The Reserve Bank says they’re often charged between 1-2% on every transaction, around three times what the big chains pay.

No wonder many end up adding surcharges to cover their costs.

We already have the tools to make real-time payments an option for everyday shopping. Unlike overseas, that option is still rarely offered at the checkout.

A faster, cheaper way to pay than with cards is possible. It’s time to use it.

Vibhu Arya, PhD Student, UTS Business School, University of Technology Sydney; Renu Agarwal, Professor, Strategy, Operations and Supply Chain Management, University of Technology Sydney, and Wen Helena Li, Senior Lecturer, UTS Business School, University of Technology Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Money

RBA stands pat on interest rates as hopes dim for future cuts

Published

7 hours ago

October 1, 2025

The Conversation

RBA stands pat on interest rates as hopes dim for future cuts

Stella Huangfu, University of Sydney

The Reserve Bank kept the cash rate steady at 3.6% at today’s meeting. In its post-meeting statement, the central bank said the monetary policy board

judged that it was appropriate to remain cautious.

This pause follows three cuts earlier this year — in February, May and August, each by 25 basis points — which lowered the cash rate from 4.1% to its current level. Governor Michele Bullock said the bank is watching those previous cuts work through the economy.

Bullock stressed that while inflation has eased from its peak, progress remains uneven, and the bank is not ready to declare victory.

For now, patience is the safer course. The next big test will be the September quarter inflation report, due at the end of October. That release will go a long way to deciding whether cuts resume later this year or slip into 2026. Market pricing, once confident of a November move, now sees the odds as little better than a coin toss.

“By the next meeting in November, we’ll have more data on the labour market and inflation data for the September quarter,” Bullock told a press conference after the meeting.

Why the RBA is waiting

The monthly consumer price index (CPI) for August showed annual inflation rising to 3.0%, up from 2.8% in July. Although this is a 12-month high, much of the increase came from the expiry of electricity rebates — a temporary factor the bank had already anticipated.

Bullock has repeatedly said the Reserve Bank puts more weight on the quarterly “trimmed mean” inflation measure — a point she emphasised most recently before the House of Representatives economics committee. This measure strips out one-off price swings and gives a clearer picture of underlying inflation.

Even so, the monthly figures show the annual trimmed mean edged down from 2.7% in July to 2.6% in August. That suggests the underlying trend remains one of gradual disinflation (a slowing in the pace of price increases), despite the lift in the headline rate.

Bullock told reporters:

The monthly data are volatile […] I don’t want to suggest that inflation is running away, but we just need to be a little bit cautious.

Progress is not yet secure. Inflation must stay within the 2–3% target range on a sustained basis before the Reserve Bank can cut with confidence. Moving too early risks undoing hard-won gains and forcing harsher measures later.

Other data reinforce this cautious approach. June quarter economic growth surprised on the upside, showing the economy is more resilient than expected. Meanwhile, unemployment has ticked higher but remains low, pointing to a labour market that is cooling only gradually.

As the statement noted,

private consumption is picking up as real household incomes rise […] The housing market is strengthening […] Credit is readily available to both households and businesses.

Together, these signals give the Reserve Bank space to pause rather than rush into easing.

A big shift in expectations

The major banks have also adjusted their forecasts. NAB has ruled out any further move this year, dropping its earlier forecasts for November and February cuts and now expecting the next reduction in May 2026. Westpac still expects a November cut, but acknowledges the timing could slip.

Financial markets have also pared back their bets. Pricing once implied near-certainty of a November cut, but that probability has now fallen to roughly 50-50.

The September quarter consumer price index will be decisive: a softer result could revive expectations of an earlier cut, while a stronger one would reinforce the view that rate cuts will not resume until 2026.

With the economy stronger than forecast and CPI a touch higher, both banks and markets are pushing out the timing of cuts. The Reserve Bank’s message is clear: inflation must show sustained progress before policy can be eased. Until then, the next cut is a matter of when, not if.

Rates around the world

The Reserve Bank is not alone in being cautious. In the United States, the Federal Reserve delivered three cuts in 2024, but only made its first cut of 2025 in September. The European Central Bank has reduced rates four times this year, but has kept policy steady since June.

Political tensions, volatile energy prices and fragile global growth all add to the uncertainty, reinforcing the case for patience in Australia.

For households, today’s decision offers no relief. Mortgage repayments remain at an elevated level and consumer spending is weak.

Looking ahead, the Reserve Bank said it will remain data-driven and responsive to risks:

The Board will be attentive to the data […] focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome.

For households, that means the wait for relief goes on. The next move is a cut, but today’s decision makes clear it won’t be rushed.

Stella Huangfu, Associate Professor, School of Economics, University of Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Money

Markets remain strong amid potential government shutdown fears

Markets remain strong as investors anticipate jobs data while ignoring government shutdown and tariff concerns

Published

3 days ago

September 28, 2025

Ahron Young

Markets remain strong as investors anticipate jobs data while ignoring government shutdown and tariff concerns

In Short:
– Major indices are near session highs, with the Dow up 382 points and resilient to shutdown concerns.
– Rising Treasury yields may challenge bullish sentiment, while upcoming economic reports will influence market direction.

Major indices are trading near session highs, with the Dow Jones Industrial Average up by 382 points, the S&P 500 by 41 points, and the Nasdaq Composite by 100 points.

Investors seem undeterred by the looming government shutdown and new tariff announcements. Despite the challenges, markets appear resilient due to previous experiences with shutdowns.

This coming week, markets should brace for monthly jobs data, assuming no shutdown occurs. Previous initial claims reports have lessened after reaching 263,000 on September 11.

Technical indicators show promise following a retreat to the 20-day SMA. The end of bearish seasonality approaches, coinciding with Q3 earnings season.

Market Perspective

However, rising Treasury yields could pose a challenge for bullish sentiment. The 10-year yield has increased over the past eight trading sessions and may close at a three-week peak.

If it stays below 4.25%, it could support ongoing bullish trends. A notable risk remains the potential negative impact of the jobs report.

Upcoming economic reports include pending home sales, consumer confidence, and nonfarm payrolls, all key to market direction.

Money

Crypto market plummets near $1 billion in liquidations

Crypto markets crash as liquidations approach $1 billion, marking a severe downturn in September 2025

Published

5 days ago

September 26, 2025

Ahron Young

Crypto markets crash as liquidations approach $1 billion, marking a severe downturn in September 2025

In Short:
– Cryptocurrency markets declined significantly, with liquidations nearing $1 billion and Bitcoin below $110,000.
– $442 million in positions were liquidated on Thursday, with Ethereum most affected, raising trader concerns.

Cryptocurrency markets faced significant declines on Thursday, with liquidations nearing $1 billion, contributing to a larger selloff that has cost the sector over $160 billion in market capitalisation.

Bitcoin fell below $110,000, trading around $111,400, while Ethereum dipped below the critical $4,000 support level, marking its lowest point in seven weeks.

The global crypto market capitalisation dropped by 2.2% to $3.91 trillion.

Liquidation reports revealed that $442 million in positions were forcibly closed on Thursday, with Ethereum most affected, accounting for over $180 million.

The previous week saw a larger liquidation event, with $1.7 billion wiped out. Traders are concerned as a significant number of long positions were liquidated in this downturn.

Market Trends

Market analysts highlight a pattern of leveraged trading leading to cascading selloffs. Seasonal factors, regulatory uncertainty, and a strengthening US dollar contributed to the declines.

Despite the downturn, some large investors are taking the opportunity to accumulate assets.