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PLUMBING CONNECTION Winter 2022
CONTACTLESS SMS PAYMENTS: AN
ESSENTIAL TOOL IN YOUR TOOLBOX
F
ew issues are more important
for plumbers than late payment.
Australian payment times
are among the slowest in the world
according to the Australian Small
Business and Family Enterprise
Ombudsman, while CreditorWatch data
reveals that late payment times in the
construction industry have reached
record highs during the pandemic.
However, just as new technology
allows plumbers to improve their craft,
so it also allows them to improve their
business too. By creating a seamless
and convenient process, contactless
SMS invoices have the potential to help
plumbers turn late payments into fast,
convenient and secure payments. But
why are contactless payments booming
today? How do they streamline a
formerly stressful and time-consuming
process? And how can plumbers
seamlessly revolutionise their payment
processes?
WHY SMS PAYMENTS?
Cash payments have been declining
steadily for a decade, overtaken first by
card and now by contactless payments.
SMS-based contactless payments are
expected to grow from almost AUD$15b
in global transactions to over $25bn
from 2020–2025. In the wake of the
pandemic, consumers are eager for
safer and more convenient methods.
Research from Podium shows that
85% of Aussies prioritise businesses
that offer pandemic-friendly services
like contactless payments. What’s
more, 53% would consider seeking a
competitor if a local business didn’t
offer this.
This is a huge opportunity for
tradespeople. Traditionally speaking,
tradespeople would spend one day at
the end of a week – or even the end of
the month – consulting timesheets and
receipts before issuing paper or PDF
invoices by post or email. Not only is
this a time-consuming, inaccurate, and
inefficient process, but it’s very easy for
a customer or subcontractor to forget
to pay, despite their best intentions, and
for you to forget to chase them. Today,
however, millions of us live and work on
our smartphones. Text messages have
a 98% open rate and a 209% higher
response rate than email and phone,
making them an incredibly effective
channel to send payment links.
HOWDOES IT WORK?
Through SMS invoices, it’s incredibly
easy to streamline the formerly
time-consuming, admin-heavy and
inaccurate process of formulating
and chasing invoices. For example,
once you’ve completed a new toilet
installation, compile your labour,
materials and any plant hire on an
e-invoice. When the invoice is ready,
it is sent as an SMS directly with a
one-click payment link to a customer’s
smartphone. Instead of them logging
into a website, banking app or sharing
card details over the phone, the link
enables them to complete transactions
quickly with credit, debit, Google Pay or
Apple Pay – all on a device that’s likely
already in their hand. Your customers
will never have to share personal data
like account details, so they won’t be
susceptible to any unexpected risks.
Through the same process, plumbers
can also send estimates and quotes
via SMS before a project. If the quote is
accepted, it can be automatically sent
as an invoice when the job is complete.
Through Podium, for example, you can
also see the status of all your payments,
invoices and transactions in one place.
Not only does it help you stay on top of
every transaction, but it also enables
you to forecast cashflow, automate
follow-up reminders for any outstanding
payments, and even integrate payments
with your accounting software to help
when it comes to tax time.
GOOD HABITS
As with any new procedure or
technology, optimising the transition
requires an initial commitment. Rather
than setting aside time to compile
invoices weekly or monthly, compile
them as you work. If you have a team,
they’ll need to be taught to develop
good habits too.
Technologies for processing funds are improving all the time, including platforms of great relevance
to plumbers and other tradespeople. We asked
Dave Scheine
from Podium to explain the basics of
Contactless SMS Payments.
PAYMENT INNOVATIONS -
DAVE SCHEINE
Dave Scheine is the
Australian Country Manager
at Podium, a customer
messaging and payments
platform for local business.
He has over 15 years’
experience. Visit www.
podium.com.auSMS payments are easy to manage,
allowing for instant payment and
seamless accounting.