Australian Payments Plus (AP+) has partnered with Google to introduce eftpos functionality and least-cost routing (LCR) for transactions made through Google Wallet, allowing merchants to move away from expensive card scheme networks.
Previously, in Australia, multi-network debit cards within Google Wallet primarily defaulted to international card networks. With this new integration, the more affordable Australian eftpos network will now be an option for transactions.
A report from the Reserve Bank of Australia (RBA) in April 2024 indicates that merchants utilizing LCR can expect nearly 20% lower costs for accepting debit card transactions compared to those without LCR enabled.
ANZ and Suncorp Bank are the first issuers to offer eftpos multi-network debit cards in Google Wallet, with additional issuers expected to join by 2025.
Adrian Lovney, chief payments officer at AP+, stated, “Mobile wallet payments now account for 40% of all in-person transactions, and that share is expected to continue growing in the coming years. By enabling merchants to route these wallet payments through the eftpos network, we foster increased competition in the mobile wallet sector, ultimately lowering the cost of payment acceptance.”