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Australia considering alternative low-cost payment system

Image Credit: Emil Kalibradov

Big savings for Aussie online payments

Australian financial platform, Airwallex, has reduced the cost of processing online payments made through domestic credit and debit cards by almost 30 per cent, allowing businesses in Australia to save up to $12,000 per year. 

Starting from March 27th, both new and existing customers of Airwallex will enjoy a 45 basis point decrease in the fees they pay to process online payments using domestic credit and debit cards, with a new rate of 1.20 per cent per payment plus 30 cents.

According to the company, this new rate is significantly lower than other major providers charging between 1.75 per cent and 2.20 per cent plus 30 cents for online payments.

The new payment processing fees offered by Airwallex can result in significant savings for businesses in Australia. For instance, an average business that processes $100,000 worth of domestic transactions each month could save up to $12,000 per year compared to other providers that charge up to 2.2 per cent. 

Similarly, a smaller business that processes $20,000 a month could save $2,400 per year, while a business processing $50,000 per month could save $6,000 annually.

Airwallex Head of Strategy for Australia, Matt Sek, said the price drop would save businesses thousands of dollars in transaction costs, particularly leading into the busy Easter and Mother’s Day periods.

“We know the cost of doing business has only been going up, so cutting back payments costs will mean businesses can keep more of what they earn,” Matt said.

“These mates rates for our customers mean cheaper products and services for their customers and more growth.

“We’ve made a commitment to invest in our Australian customers, and as they succeed, so do we.”

Matt said Airwallex had doubled-down its investment into building leading online payments infrastructure in Australia and abroad, which meant it could lower its transaction fees.

“We’ve been investing in our online payments infrastructure as we grow which means we can pass on the cost savings by dropping our prices for our merchant customers,” Matt said. 

“We’re a modern payments platform built from the ground up for modern businesses of any size – which means we don’t have all the baggage of banks or other legacy payment platforms.

“In recent weeks we’ve seen other payments businesses announce increases in transaction costs, but at Airwallex we’re taking a different approach.

“Not only does our online payment gateway make it easier to accept domestic and international payments for businesses, but our fee change will make it even cheaper too.”

Airwallex processes nearly $50 billion in transactions each year and powers more than 6,000 businesses in Australia.

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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