A recent announcement stated that businesses across Australia could possibly save up to $12,000 each year after the Australian-born and founded financial platform Airwallex slashed the cost of online payments processing for domestic credit and debit cards by nearly 30%.
Why did Airwallex introduce the price reductions?
From Monday 27 March, Airwallex’s new and existing as well as prospective Australian business customers will see a 45-basis point reduction in what they usually pay to make online payments done by domestic credit and debit cards – down from 1.65% to 1.20% per payment as well as 30 cents. This is in comparison to other major market providers charging between 1.75% and 2.20% plus 30 cents to process each online payment. A noticeable difference.
Airwallex Head of Strategy for Australia, Matt Sek, said the price drop would save Australian businesses thousands of dollars in transaction costs, particularly leading to the busy Easter and Mother’s Day periods. “We know the cost of doing business has been going up, so cutting back payments costs will mean businesses can keep more of what they earn,” Matt said.
“The new payment rates for our customers consequently mean cheaper products and services for their customers and realization of increased business growth. We have since made a commitment to invest in our Australian customers. As they succeed, accordingly, so do we.”
- An average business doing $100,000 a month in domestic transactions in Australia would save $12,000 per year in transaction fees from the change, compared to other companies’ offerings at up to 2.2%.
- A smaller business doing $20,000 a month in transactions would save $2,400 per year.
- A business doing $50,000 a month in transactions would save $6,000 per year.
How has Airwallex made all this possible?
Matt said Airwallex had doubled down on its investment into building leading online payments infrastructure in Australia and abroad, which meant it could lower its transaction fees.
“We’ve been faithfully investing in our online payments infrastructure as we grow which means we can pass on the cost savings by dropping prices for our merchant customers. 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 have seen other payments businesses announce increases in their transaction costs, but at Airwallex we are taking a very different approach. Not only does our online payment gateway make it easier to accept domestic and international payments for business customers, but our fee change will make it even relatively cheaper too,” Matt said.
Airwallex as an online payment platform and business processes nearly $50 billion in transactions each year and it also powers more than 6,000 businesses in and across Australia.