Sydney, Australia – Australian financial payment systems and software solutions provider, DataMesh Group (‘DataMesh’ or ‘the Company’) is pleased to announce it has developed a unique capability to automatically apply least cost routing (LCR) technology within Australia’s debit card payment system for its customers.
LCR allows for the best economic outcome for merchants on contactless (tap-and-go) debit card payments by sending them through the debit network that costs the least to accept. It enables a debit payment to be uniquely “flagged” as a specific debit card transaction and sent to the lowest cost debit network, resulting in the lowest cost fee structure for the merchant.
Without LCR, the transaction is sent to the default debit network programmed on the customer’s card, which may not be the lowest cost debit network, resulting in higher transaction costs for merchants.
Merchants will use DataMesh’s ground-breaking software to enable automatic selection of LCR for debit transactions, resulting in lower costs for merchants by routing through eftpos.
DataMesh’s software can read the card/phone/watch, decipher whether it’s a debit or credit payment and attach the relevant message to the transaction before it’s sent to eftpos via the acquirer (potentially any bank), which has awarded the transaction the applicable fee structure. Merchants are then charged the lowest payment fees on debit transactions.
The Sydney-based fintech is among the first companies to have found a way to automatically select LCR on a tap-and-go debit payment.
DataMesh’s software can be uploaded on existing hardware terminals, negating the need for merchant acquirers to buy new terminals, nor requirements for action by merchants or cardholders.
eftpos, the Australian Retailers Association (ARA), and retailers have been pushing for LCR, with the Reserve Bank of Australia (RBA) saying it will consider regulation if it’s not made widely available to merchants.
Currently, debit cards represent around 70 percent of all card transactions in Australia, so DataMesh LCR technology translates into significant transaction cost savings for merchants.
DataMesh Group CEO Mark Nagy said:
“The unique least cost routing capability developed by DataMesh is a massive win for Australian merchants, especially in this era of contactless payments.
“eftpos’ debit card network accounted for more than two billion cheque and savings transactions in 2019 worth around $130 billion. 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.
“Conservative estimates suggest a potential reduction in fees for merchants of up to $500 million dollars nationally per year if LCR was fully implemented.
“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.”
DataMesh is focused on vastly improving and modernising merchants’ outdated backbone payment systems. It has developed solutions that not only fix current payment system issues for merchants but can increase their business efficiency through new and improved integrated technology.
Last month, the Company announced it had signed a major long-term agreement with national retail giant Peregrine Corporation under which DataMesh has become the company’s sole payments provider.
Peregrine is using DataMesh’s LCR capability through its acquirer to effect significant payment cost savings to its business, which had a reported annual turnover of $2.2 billion last year.
DataMesh’s software is fully developed in Australia, with all IP owned by DataMesh. DataMesh is Australian owned, and its technology is Australian built and operated.
DataMesh operates under PCI Standards Council and the Australian Payments Network regulations. DataMesh’s switching platform is EMV and PCI-DSS Level 1 certified for Card Present (CP) and Card Not Present (CNP) transactions.
About DataMesh Group:
DataMesh Group is focused on revolutionising the current payment systems available to Australian merchants, delivering integrated payment capabilities and valuable customer insights through bespoke payment and data processing solutions.
The Company’s proprietary financial switching platform (Unify™) has resolved payments technology and compliance issues for major retailers and their customers while maintaining robust relationships with banking and regulatory partners.
It is the world’s most modern and powerful cloud and terrestrial-based financial switching solution available on the market. DataMesh Group’s suite of financial payment systems hardware, software, infrastructure and data analytics products provide streamlined, low cost and flexible payment solutions integrated to leading point-of-sale (POS) systems and various next-gen payment devices.
DataMesh technology enables retailers to design the experience they deliver to customers, creating a hub for commerce and data that merchants, acquirers, card schemes and third parties can use to achieve better business outcomes.
DataMesh operates under PCI Standards Council and the Australian Payments Network regulations.
DataMesh’s switching platform is EMV and PCI-DSS Level 1 certified for Card Present (CP) and Card Not Present (CNP) transactions. Data collected by its software is always safe and secure. www.datameshgroup.com
Sydney NSW Australia
brooke.swartz ( @ ) fticonsulting dot com