Tyro has saved businesses over $1.5 million in merchant fees
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.