The Hidden Cost of Missed Payments in Gyms – by Candice Sergeant | Netcash
In a gym business, energy is usually focused on programming, member experience, and retention. But often what quietly determines success or struggle is something far less visible: payment collection. Despite packed classes and loyal communities, many gyms find themselves grappling with erratic cash flow and unpaid dues. Candice Seargeant from Netcash, speaking at the GrowthFit event, laid bare the reality—missed payments are costing gyms more than they realize.
Let’s unpack how poor payment infrastructure can derail even the most passionate fitness businesses—and what you can do to fix it.
1. Why Debit Orders Matter
Debit orders are the financial backbone of most gyms. In fact, 96% of gyms rely on them because they offer consistency, bank-grade reliability, and are familiar to South African consumers. Whether it’s insurance, car payments, or cell contracts, people are already accustomed to debit orders.
However, the fitness industry stands apart in one troubling area: a 13% unpaid debit order rate. That’s nearly triple the national average and double that of other service industries. The implication? Even if you have 300 members, you’re potentially losing payments from nearly 40 of them every month.
And when your margin depends on monthly inflows to pay staff, rent, equipment, and instructors—13% is not just a small dent. It’s a structural threat to sustainability.
2. Why It’s So High
Unlike traditional service contracts, fitness memberships are tied directly to personal motivation—and motivation is a fickle thing.
People sign up in January with high energy. By April, they’re ghosting your gym. But instead of canceling their debit order, they simply stop engaging. This phenomenon—known as quiet quitting—isn’t just a workplace trend; it’s showing up in gym memberships too.
Added to this is life’s unpredictability:
Injuries
Illness
Financial stress
Changing routines
All of these can push a gym payment to the bottom of someone’s financial priority list.
Worse, most members won’t confront the issue. They won’t pick up the phone. They avoid hard conversations. That leaves you chasing unpaid invoices, often without success.
3. The Automation Advantage
Here’s the good news: gyms that embrace smart automation tools see drastically improved collection rates—and less stress for their teams.
Solutions like Netcash’s Payment Request allow gyms to automatically follow up on failed debit orders. Instead of phoning clients or manually sending reminders, the system sends a professional, branded payment link via SMS or email.
The result?
Members can pay discreetly, at their convenience.
You remove friction and shame from the process.
And gyms using this feature have reported up to 50% higher recovery on missed payments.
It’s not just about collecting money. It’s about protecting the relationship—and your reputation—while ensuring your gym continues to thrive.
