Small businesses make up 98 per cent of all businesses in Australia, yet they continue to bear the brunt of economic uncertainty. According to CreditorWatch’s latest Business Risk Index, the national business failure rate has climbed to 5.04 per cent, up from 3.97 per cent a year ago, marking the highest level since the height of the COVID-19 pandemic.

Heading into 2025, SMEs are contending with a storm of challenges: soft consumer spending, ongoing inflation, and persistent resource shortages. For many, managing cash flow, covering supplier costs, and reinvesting in growth is becoming increasingly difficult.

I met with Edward Alder, CEO and co-founder at pay.com.au, to discuss how his company is helping to ease the pressure for the small business community.

pay.com.au leads the business payment revolution

As the way businesses handle payments continues to evolve, pay.com.au is revealing itself to be at the forefront of this change. Since launching, the company has seen rapid growth, with more than 40,000 businesses signing up to date. This growth signals a clear demand from businesses of all sizes for smarter cash flow management that collectively earns substantial rewards on their transactions.

Traditionally, SMEs have had limited opportunities to benefit from reward programs when paying their creditors and suppliers. With pay.com.au, businesses can now accumulate points on their expenses, which can be redeemed to pay other bills or converted into airline points.

The company continues to expand its partnership pipeline, building strategic relationships with leading fintechs, airlines and hospitality groups to enhance rewards for users. Existing partners include major airlines such as Qantas Business Rewards and Virgin Australia Business Flyer.

By integrating rewards into everyday expenses, small businesses can unlock new financial benefits without changing their spending habits.

A win-win solution for business owners

Alder says, "My co-founder, Damien Waller, and I created a business where everybody wins. Business owners now have an opportunity to earn points on their operational expenses, which they can redeem or even transfer to others for future payments."

He also tells me that the concept for pay.com.au was inspired by a survey conducted among visitors to PointHacks.com.au, a popular frequent flyer forum. The results highlighted strong demand from business owners looking to earn rewards on everyday operational spending, but the real gap in the market was that existing rewards programs were designed solely for consumers, overlooking Australia’s 2.6 million SMEs. With $2.6 trillion in transactions occurring between these businesses, the gap in the market was clear.

"We found that there wasn’t a rewards operator in the SME payment space. Banks had left this segment alone, and that’s where pay.com.au stepped in. We built a platform where no one loses — businesses can pay their bills as usual while earning points," Alder continues.

How does pay.com.au work?

Today, over 600,000 Australian businesses are interested in earning rewards. Alder outlines that the platform is designed to address this demand and make earning rewards effortless. Business owners simply add their payees to their profile and process their bills through the platform. Points are earned on almost all business expenses, whether paid by credit card or bank transfer, with no caps on earnings.

"Our operations fuel positivity in the SME space. Many business expenses wouldn’t normally be eligible for credit card-based reward programs, but with pay.com.au, they still earn rewards," Alder adds.

Additionally, pay.com.au offers a flexible, tiered rewards structure (1 point/$1 at a 1.0% fee or 2 points/$1 at a 1.8% fee) on select transactions, enabling businesses to customise their rewards strategy. These points can then be redeemed for a variety of options, including travel, experiences, and gift cards, catering to individual business needs.

Beyond business use, rewards provide SMEs with a unique way to enhance employee engagement and satisfaction by offering tangible benefits, such as gift cards or travel perks, which can enhance motivation and retention.

With SME challenges in mind, pay.com.au integrates seamlessly with Xero, ensuring bookkeepers and accountants can easily synchronise and manage pre-approved bills awaiting payment with no operational disruptions.

Alder highlights the platform’s premium travel service, “PayTravel helps users save up to 50% on cash fares by using points to book their travels, assisting in securing hard-to-find reward seats, putting together customised itineraries, and accessing exclusive travel services.”

With tight margins and rising costs, small businesses need every advantage. With pay.com.au, small businesses can turn everyday payments into valuable rewards, helping them stretch budgets and grow with confidence.

You can learn more about the platform at pay.com.au.

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