Tyro first-to-market on contactless payments deadline
Tyro today announces its "Tap & Save" initiative ahead of government deadline on contactless payments.
Australian Business-only bank Tyro has today beaten the Big Four in enabling its merchants to process debit tap-and-go payments in-store via eftpos with its "Tap & Save" initiative. By allowing merchants to process these contactless payments via EFTPOS Tyro will be saving money for businesses, and in turn consumers.
Currently, banks don't allow merchants to select which route debit tap-and-go payments made by customers are processed, with these transactions going through the more expensive Visa or Mastercard system. Having these debit transactions processed through the Visa or Mastercard route instead of EFTPOS costs Australian businesses an estimated $290 million a year. This is also the reason why some businesses charge an additional surcharge to consumers who wish to pay via payWAVE or tap-and-go.
In December 2017, The House of Representatives Standing Committee on Economics ordered the banks to allow merchants to instead have the option of sending these contactless payments through the EFTPOS network. The banks were given a deadline of 1 April 2018 to comply and Tyro has today beaten the major banks across the line with its Pay & Save initiative.
Tyro said its merchants will save on average 6% on their Merchant Services Fees (MSF) and the majority of its merchants will save between 20-30% on re-routed transactions going through EFTPOS instead. This is because Tyro will price these tap-and-go contactless payments as EFTPOS transactions under the new initiative. Tyro has even said the market-first move will impact its own bottom line.
Director of product at Tyro, Bronwyn Yam, said, “Our aim is to remove the barriers from business success and we are thrilled to give our customers the opportunity to be the first businesses in Australia to benefit from Tap & Save. As the first-mover in offering least-cost routing to merchants, it certainly gives our customers an advantage. Tap & Save has the potential to provide Tyro merchants with some relief from the expense of doing business. We constantly look at how we can make banking and payments easier and more cost effective for merchants. Tyro’s commitment to delivering value to customers with Tap & Save even comes at the expense of our own bottom line.”
New and existing Tyro merchants can sign up to Tap & Save from today.
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