A decade of growth and innovation: Businesses in Australia have processed over A$200 billion on Stripe

• New Stripe data reveals payment volume in Australia grew 5x from 2019 to 2023.
  
• At Stripe Tour Sydney, Stripe unveils new solutions to accelerate Australian business growth, including PayTo and Instant Payouts.
  

SYDNEY-Stripe, a financial infrastructure platform for businesses, today marked its 10th anniversary serving Australian businesses, celebrating the rapid growth in the country's internet economy. At its annual conference, Stripe Tour Sydney, Stripe reinforced its commitment to Australia by launching new solutions to support businesses' growth, including support for PayTo and Instant Payouts. In New Zealand, Stripe also launched Bulk Electronic Clearing System (BECS) direct debit payments for businesses.

"In a decade, we've grown from a handful of Australian businesses on Stripe to hundreds joining daily. The tools we're launching today will reduce their costs, improve cash flow, and improve their ability to serve their customers. We are thrilled to continue to support our Australian users in adapting to the ever-changing payments landscape," said Patrick Collison, cofounder and CEO of Stripe.

A decade of growth across Australia

In 2014, only a few dozen Australian businesses used Stripe. Now, over 500,000 businesses do, and hundreds more-from century-old enterprises to solopreneurs-join the Stripe network every day. These include technology companies such as Canva that built on Stripe early in their journeys, as well as large enterprises like Westfield that are reinventing themselves for the digital age. In total, businesses in Australia have processed over A$200 billion on Stripe over the last decade.

The platform economy has also expanded rapidly on Stripe. Platform solutions from me&u, MYOB, Rezdy, and Xero have dramatically lowered the barriers to running a business online. In 2023, the number of Australian businesses using a platform on Stripe increased by nearly 20%.

Lower cost payments and faster cash flow, built on Australian and New Zealand infrastructure

Building on this momentum, Stripe announced support for PayTo, a low-cost, real-time payment method that enables businesses to initiate recurring and one-off payments directly from their customers' bank accounts. This allows for real-time payment status verification, 24/7 processing (including weekends and public holidays), and better mandate management, all without businesses having to change their Stripe integration.

Stripe also now offers Instant Payouts to all businesses in Australia to support their cash flow needs. Users can request payouts from their Stripe balances instantly, anytime, including holidays and weekends. Platforms and marketplaces on Stripe can also enable their own customers to receive instant payouts, and monetize this service by charging a fee. Businesses can transfer up to A$9,999 in funds to an eligible account within minutes of a card transaction. Funds typically settle in the associated bank account within 30 minutes.

In New Zealand, the rise of subscription services such as streaming platforms, meal kits, and software-as-a-service (SaaS) products, has fueled demand for Stripe to launch BECS direct debit. This speeds up the payments process by debiting customers' bank accounts directly, lowering transaction costs and avoiding churn caused by failed payment cards. It's the first time that BECS will be available as a payment method on Stripe for subscriptions in the country.

"Xero's decade-long partnership with Stripe is built on a foundation of helping small businesses get paid faster and maintain a healthy cash flow. Stripe's extensive payment method support allows us to cater to the diverse needs of our customers in Australia and New Zealand and grow our subscription-based services with confidence by offering platform billing methods like NZ BECS direct debit," said Bharathi Ramavarjula, SVP, payments and ecosystem at Xero.

The next decade

Australia's internet economy has significant room to grow. The next decade looks particularly promising, spearheaded by digital natives (Millennials, Gen Z, and Gen Alpha) that comprise more than half of the Australian population. Gen Z in particular is predicted to make up a significant part (23%) of Australia's workforce in 2024. Businesses looking to thrive need to adapt to the payment preferences and expectations of this generation.

New research commissioned by Stripe in Australia found that nearly 6 in 10 Gen Z respondents say they won't be using cash in 10 years. Instead, they expect to be fully reliant on digital payment solutions such as smartphones/digital wallets (67%), biometrics (20%), and wearables (20%). Stripe will continue to help Australian businesses make the most of these opportunities.

Businesses interested in learning more or gaining early access to PayTo, Instant Payouts, or NZ BECS, can contact Stripe here.