RMIT study shows digital payment is key to the survival of Melbourne's busking scene

Using data from the online platform ‘The Busking Project’, new RMIT research reveals electronic and digital payments are the key for buskers and street performers to survive in a post-COVID world.

Buskers often exist on the cultural fringes and receive little, if any funding, but can bring vibrancy to urban precincts. Our changing relationship with cash and dramatically reduced foot traffic in CBDs around the globe has prompted street performers to find different ways to generate income and sustain their careers.

The RMIT study analysed individual payments to over three and a half thousand active buskers from 121 countries, including Australia, to predict the characteristics of performers who were more likely to receive online donations.

RMIT economists found passers-by often donated more when paying via a digital platforms like apps, QR codes, PayPal and even Bitcoin, compared to the centuries’ old payment method of loose coins.

Melbourne was Australia’s busking capital with nearly a third of the 263 Australian active street performers based in Victoria’s capital.

The study also found:

• Circus performers received the biggest donations;

• Musicians were most likely to receive donations, but received smaller amounts compared to other types of artists;

• The number of other onlookers influenced if and how much passers-by donated;

• The artist’s location and social media profile also impacted and influenced receiving a donation

• Artists who joined the platform after the World Health Organisation (WHO) announcement that COVID-19 was a pandemic in March 2020 were more likely to receive a donation, which ranged from just $1 to over $700.

Lead author Dr Meg Elkins - a Senior Lecturer in the School of Economics, Finance and Marketing at RMIT University and the Behavioural Business Lab - said street performers had a critical role to play as cities looked to bring back the buzz to their CBDs in the wake of the COVID-19 pandemic.

Dr Elkins notes “Buskers often exist on the cultural fringes and get little, if any funding, but can bring vibrancy to streets, squares and shopping strips as people walk from the train to their office or duck out during their lunch hour..

“Buskers performing in public for coin is a centuries old practice, but they have to move online as our society becomes increasingly cashless.

“We know many street performers become personalities in their own right and we wanted to uncover how they could use digital payment systems to increase their online earnings and create more sustainable careers.

“Circus performers being more likely to attract online donations might be because they’re better at incorporating that ‘hat line’ into their performance compared to musicians who are traditionally much more static.”

Dr Elkins highlights that the findings were important as artists and the creative and cultural industries had to become more entrepreneurial to survive.

“In the future, we could see QR codes as part of the street performance, which would simplify the payment process even further,” she said.

“More than 40 QR code trails are underway across Europe, the US and Australia.

“Digital platforms can potentially allow street performers to generate more generous donations beyond cash tips.

“They’re also a way for artists to interact with supporters and build that all important fan base, which can ultimately help sustain a career.”

The video below, courtesy of The Busking Project, explains how buskers can get tipped using Apple Pay, Android Pay, PayPal AND Card payments.

‘Beyond the realm of cash: Street performers and payments in the online world’ with Tim R.L. Fry is published in the Journal of Cultural Economics 

Images courtesy of The Busking Project