Business-only bank Tyro has announced the launch of its Tap & Save contactless payments solution that will save merchants money by processing debit tap-and-go payments through the more economical eftpos network. Tap & Save is a first-to-market initiative offering least-cost routing to merchants that has launched ahead of the 1 April 2018 deadline recommended by the House of Representatives Standing Committee on Economics*. Eligible new and existing merchants will be able to sign up to Tap & Save from today.
Least-cost routing will afford Australian businesses the choice to automatically process multi-network debit (MND) contactless transactions to the least-cost payment network. Tyro’s Tap & Save offering has the potential to generate substantial savings on acceptance costs for eligible scheme debit tap-and-go payments for businesses using Tyro terminals – cutting costs for SMEs.
According to eftpos, debit cards represent almost 70 per cent of all card transactions in Australia, or around six billion transactions a year and growing rapidly. Of that, around 70 per cent of all debit cards, or 26 million, are MND cards, featuring both eftpos and international schemes.
Bronwyn Yam, Director of Product at Tyro, 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.”
Tyro CEO, Robbie Cooke, said, “I am excited to see Tyro take the lead once again by bringing least-cost routing to the Australian market before all the other banks. Tap & Save is the perfect example of how Tyro is responding to the banking needs of SMEs.”
The use of cash continues to decline and more Australian consumers are now in the habit of tapping their card when paying for purchases. During a typical week, consumers of all ages are using contactless cards more frequently than ever before. The Reserve Bank’s fourth triennial Consumer Payments Survey (CPS) revealed that over the three-year survey period to November 2016, contactless card payments had escalated three and a half times to represent two thirds of all in-person card payments**.
Currently in Australia, almost all MND tap-and-go card payments revert to the international credit card schemes, instead of the eftpos network. While the outcome is the same for the cardholder, the credit card schemes typically charge the merchant more than eftpos. As of September 2017, the Reserve Bank shows the average total merchant fee for a debit contactless transaction was 0.26 per cent with eftpos and 0.58 per cent with the international credit card schemes.