Tyro has saved businesses over $1.5 million in merchant fees

Thomas Stelzer 21 November 2018 NEWS

Merchant service fees are 8.4% lower on average.

Tyro has revealed that its "Tap and Save" campaign has saved Australian merchants over $1.5 million in transaction and service fees since its launch in March 2018 by using the eftpos network to process eligible tap-and-go payments.

The initiative has handled over 11 million transactions, with businesses saving an average of 8.4% on merchant service fees over this period, and some having saved up to 30% on routed transactions. While tap-and-go payments are normally processed as a credit transaction, Tyro allows them to be routed using the cheaper eftpos network.

One-fifth of Tyro's 20,000 customers have now enabled the Tap & Save payment method, with the biggest opt-in coming from the retail and hospitality industries. According to Tyro, participating hospitality businesses have saved over $750,000 in fees, with retail businesses saving over $545,000.

Robbie Cooke, CEO of Tyro, says the program has surpassed their expectations. "The success of Tap & Save has gone beyond our initial estimate and close to 20% of our existing customers are already enjoying the benefits of least-cost routing with more customers signing up weekly. We've also seen a solid increase in merchant acquisitions since the launch. The micro and small business markets have been quick to embrace least-cost routing."

As small business owners look to combat extensive cash flow issues, Tyro has also introduced flexible eftpos settlement times to allow businesses to suit their specific business operation.

With Australian businesses also having lost potentially $12.5bn due to long queues, the benefits of using Tap & Save may also extend beyond cheaper merchant fees. "Tap-and-go is by far the easiest and most convenient way to pay, with more and more Australians tapping away at point-of-sale. Tyro is the first bank to offer merchants the ability to route these transactions through the more economical eftpos network with Tap & Save, which has certainly given our customers an advantage," says Cooke.

Latest business content

Picture: Shutterstock

Get more from Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site