Tyro 'welcomes' RBA payments review despite share price slump
Make us a preferred source
Make us a preferred source on Google
More news: Tyro Payments CEO and managing director Jon Davey has said he welcomes the RBA's proposed plans to ban surcharges on eftpos, Mastercard and Visa cards. The central bank's announcement has weighed heavily on the company's share price today.
Tyro shares were down 7.9% to 84.8 cents at 1:55pm AEST, having fallen more than 10% at the open.
Tyro also said it will host a market briefing for investors at 4:30pm today.
What they said: "We welcome the RBA's proposed payments updates, which aim to increase transparency and lower card costs for consumers and merchants," Davey said in an ASX release.
"The RBA's proposal supports a holistic view of payments reform that benefits small businesses and creates opportunities for Tyro. We encourage the RBA to move with speed."
Tyro Payments shares slide as RBA plans card surcharge ban
More news: Shares in payments provider Tyro tumbled in morning trade after the Reserve Bank announced plans to ban surcharges on eftpos, Mastercard and Visa cards.
Tyro shares were down 6.8% to 85.8 cents at 11:30am AEST, having fallen more than 10% at the open.
RBA plans to scrap card surcharging to save consumers $2.4 billion
The news: The Reserve Bank has proposed ending surcharging on all Eftpos, Mastercard and Visa cards in a move it says will save Australian consumers $1.2 billion per year.
It also wants to lower the cap on interchange fees paid by business which the bank estimates will benefit nine in ten Australian businesses and save them an additional $1.2 billion, as well as require card networks and large acquirers to publish their fees
Releasing a consultation paper on Tuesday, the proposals see the central bank go further than expected in curbing charges as part of its Merchant Card Payments Costs and Surcharging Review.
The payments industry will now have six weeks to provide its feedback on the RBA's plans, with the central bank hoping it can implement the new measures in place by next July.
What they said: RBA Governor Michele Bullock said the proposals were essential to adapt to an evolving payments landscape in which fewer Australians are using cash and businesses are copping higher costs.
"We think the time has come to address some of these high costs and inefficiencies in the system," Bullock said.
"We know these proposals will spark discussion, especially among businesses that currently surcharge, which is why we are consulting on these proposals for six weeks."
"Our goal is a more competitive, efficient and safe payments system for everyone."
The context: The review comes as the central bank looks to increase transparency and competition in Australian payments system.
The surcharging prohibition won't affect American Express which operates under its own voluntary agreement with the RBA.
The source: ASX
