New fintech payment system set to save merchants millions
The independent processing network, which is also known as The Company, debuted the new software platform which it is hoped will save merchants up to AU$500m a year in fees, when completely implemented across Australia.
An estimated 70% of all card payments in Australia are via debit, hence the significant annual savings.
The least cost routing (LCR) technology produces the cheapest debit card routing options for customers. The payments is “uniquely flagged” as a debit card payment, and automatically sent via eftpos to the lowest cost debit network, thus cutting fees for merchants.
DataMesh, which was founded in 2014, focusses on updating and improving “outdated backbone payment systems”. The fintech is known for developing solutions that streamline current payment processes for merchants by developing state-of-the-art, integrated software.
The DataMesh software can operate via multiple payment devices such as cards, mobile phones or smart watches, and it can discriminate between credit card and debit transactions. The Company is one of the first fintechs to have invented an automated LCR system on a chip and pin payment.
The DataMesh software can also be installed on current hardware, which means merchants can use their existing equipment and simply need to upload it to their machines.
“The unique least cost routing capability developed by DataMesh is a massive win for Australian merchants, especially in this era of contactless payments,” explained DataMesh Group CEO, Mark Nagy.
He continued; “eftpos’ debit card network accounted for more than two billion cheque and savings transactions in 2019 worth around $130bn. DataMesh is working with eftpos and other payments industry members in the push for least cost routing, and to bring down fees for merchants in what is a very challenging environment for retailers and consumers.”
Nagy explained that implementing the software nationwide did not present any major challenges. “DataMesh LCR software is compatible with many legacy merchant terminals and most acquirers. We estimate more than half of card terminals in Australia are currently unable to fully support LCR, so our technology provides an effective solution and removes the need for acquirers to undertake costly hardware upgrades.”
He added, “DataMesh LCR software is compatible with many legacy merchant terminals and most acquirers. We estimate more than half of card terminals in Australia are currently unable to fully support LCR, so our technology provides an effective solution and removes the need for acquirers to undertake costly hardware upgrades.”