Even with the heavy fees that comes with it, the ‘tap and go’ trend on debit and credit cards continues to grow , as cash transactions seem to be becoming a thing of the past.

According to the Reserve Bank’s  yearly bank fee survey showed that banking fee income made from businesses that accept tap and go payments has grown massively in the past few years. There was a 3% increase on the overall fee income from businesses with merchant service fees on card transactions as the main driver of the spiker.

Over the last couple of years, RBA also found that there has been a significant decline in ATM withdrawals as people are opting for electronic payment options over cash. Aussie shoppers are after the convenience provided by tap and go.

In addition to this, many banks are now offering services like mobile payments options on their cards, like Apple Pay, Samsung Pay and Google Pay, it’s never been easier for customers to tap and go on purchases which hurts small businesses hard as they try to keep up with the large fees they pay on card transactions. 

To provide customers and business owners other options to the more expensive Mastercard PayPass and Visa Paywave, the RBA is currently pushing to help low-cost payment alternatives grow, like eftpos. Moreover, they are working on reforming the way in which banks charge merchants on tap and go transactions.

Peter Marshall, Mozo’s Banking Expert, said “Contactless payments have become the main method of paying for shoppers, so it’s crucial that we establish a fee structure that is regulated properly. It’s important that the system is fair for both businesses and customers, so smaller businesses aren’t left struggling to keep up with the large fees that come with accepting tap and go payments.”

Source: Mozo 

Least-Cost Routing Explained

Download the PDF and receive a free annual membership offer

Find out More

Small businesses are wasting revenue in merchant fees Posted on: 16-07-2019

Small businesses are wasting revenue in merchant fees

Many of Australia’s 2.1 million small businesses, says a specialist payment consulting firm, are wasting revenue by not investigating the best payment service providers. Nor are they making the most of least-cost routing.

Read More

Banks roll out cheaper tap-and-go payments for business Posted on: 03-06-2019

Banks roll out cheaper tap-and-go payments for business

Small and medium businesses could possibly save money by changing how their customers’ tap and go payments are processed.

Read More

CBA sees surge in contactless transactions following Apple Pay roll out Posted on: 31-05-2019

CBA sees surge in contactless transactions following Apple Pay roll out

In over 90 percent of purchases, contactless payment transactions, almost tripled its growth since the introduction of Apple Pay earlier this year.

Read More

How to select an EFTPOS provider: Essential criteria a small business should consider Posted on: 08-03-2019

How to select an EFTPOS provider: Essential criteria a small business should consider

With almost twenty banks and payments service providers to choose from, selecting an eftpos provider for a small business like a retailer or café can be difficult.

Read More