Tyro Payments (TYR) Investor update summary

RBA reforms and market impact

• RBA reforms will end surcharging on debit, prepaid, and credit cards from October 2026, covering EFTPOS, Mastercard, and Visa.

• Maximum interchange fees for consumer credit and debit cards will be lowered, including a cap for foreign-issued cards.

• Large acquirers and schemes must publish their fees, enhancing transparency and enabling easier provider comparisons for merchants.

• The reforms are expected to disrupt issuers, schemes, and acquirers reliant on surcharging and opaque pricing, while lowering payment costs for consumers and simplifying pricing for small businesses.

• The changes align with a shift toward greater market transparency and competition, benefiting providers with clear pricing models and fostering a more competitive, transparent market.

Implementation timeline and operational readiness

• Removal of surcharging and reduced interchange caps for domestic cards take effect 1 October 2026.

• Interchange caps for foreign-issued cards and fee publication requirements start 1 April 2027.

• Existing cost-plus and card-based pricing models are already aligned with the new transparency objectives.

• Systems and operational capabilities are ready to support the reforms' implementation.

Company positioning and financial implications

• The business model is built on transparent, vertical-specific solutions, aligning well with the new regulatory environment.

• No negative impact is expected on short- or medium-term financial targets; the reforms are anticipated to be net neutral for gross profit.

• Revenue and cost lines will both decrease as interchange fee reductions are passed through to merchants, maintaining margins.

• Dynamic least-cost routing is already in place, ensuring merchants benefit from the lowest possible fees.

• The company has experience implementing pricing changes and will leverage this to update customers efficiently.