Could innovative payment schemes alleviate cash flow concerns?

Getting on top of cash flow concerns is a key desire for SMEs around Australia, but are these companies using everything at their disposal to attack the problem?

Business development depends on innovation, and this doesn't necessarily just mean the products that are offered to customers and clients. Successful businesses find a way to innovate through every step of their operating procedures. 

Why not extend this school of thought to the rest of your business?

Visa promotes innovative payment methods

With the digital revolution well underway, technology companies are looking to find as many innovative uses for new systems as possible. SMEs that previously had no interest in IT have had to become experts overnight, and this trend is showing little sign of slowing up any time soon. 

Visa has called for the Reserve Bank of Australia (RBA) to consider the role online payments play in the future of Australia's businesses and consumers. The firm is suggesting the RBA should look to promote innovation within the sector while encouraging "competitive neutrality" between it and traditional payment formats. 

The biggest concern for Visa is that its own systems and MasterCard's are currently being regulated under the Payment Systems (Regulation) Act 1998, a set of rules that other competitors do not need to follow. Visa estimates that this has cost businesses and consumers around $770 million since they were introduced. 

The firm would also like the RBA to review the ability for businesses to charge surcharges for using these services, an effort that is preventing people from getting the most out of these options. If possible, Visa wants there to be firm regulation for electronic payment surcharges, which could affect the way businesses approach cash flow. 

SMEs struggling with cash flow should be looking to see how innovative payment alternatives such as these could be benefiting their business.