With all eyes on Australia’s 17th CeBIT taking place in Sydney next week, PCN’s Catherine Batch spoke to panel participant Tyro’s Bronwyn Yam about the Disruption in Banking topic and Tyro’s own recent disruption activity.
According to Yam the Australian market has responded well to Tyro’s least cost routing product; ’Tap & Save’ which was launched two months ago. For the uninitiated, least cost routing is where a merchant chooses to route a debit contactless payment transaction over the network that offers the lower cost for that transaction.
Our success has gone beyond our initial estimate and we have seen over 10 per cent conversion of our existing merchant base to use least cost routing, and a solid increase in merchant acquisitions since the launch. We have achieved our aim of putting pressure on the bigger players.
The micro and small business market have been quick to embrace least cost routing.
With merchants achieving up to a 20 per cent saving in fees there is certainly a lot to be gained, Yam said.
At all times, it is about the merchant’s choice and what is right for their business.
There are times where a merchant may have programs in place that offer benefits such as purchase protection, product warranty or rewards with the international schemes which would make least cost routing less beneficial. Yam concluded.
The Disruption in Banking panel will be focussed on some timely topics, against a backdrop of the Banking Royal Commission there will be valuable insights into just how the big four banks will regain trust in a post Royal Commission landscape.
Author: Catherine Batch, Research Director, Payments Consulting Network.