An Australian business-only bank has moved to reduce the cost of transactions for merchants by launching its ‘least-cost routing’ contactless payments network.
Tyro's new Tap & Save system will reroute multi-network contactless transactions to the payment network with the lowest cost – an initiative announced by the company in December 2017.
Eligible new and existing merchants can sign up to Tap & Save from today. Tyro merchants will save on average 6 per cent on their Merchant Services Fees and “the majority” of Tyro merchants will save between 20 and 30 per cent on rerouted transactions, said the bank.
The concept of ‘least-cost routing’ for eftpos contactless payments was discussed by the House of Representatives Standing Committee on Economics, with the committee recommending 1 April 2018 as the deadline.
Tap & Save will result in Tyro “surrendering” some of its revenue to its merchants, the company claimed.
Recently appointed Tyro chief executive Robbie Cooke said Tap & Save was being rolled out ahead of the four banks’ offerings.
“Tap & Save is the perfect example of how Tyro is responding to the banking needs of SME,” Mr Cooke said.
According to eftpos, debit cards represent 67 per cent of all card transactions in Australia.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.