69. Power of Paywave

I am a millennial, right – which basically means I am a part of a generation who is okay to have my computer remember all of my passwords and personal information, we’re happy for a phone to scan our faces and we’d prefer to chat online with a stranger than make a real-life phone call (I’ll admit I’m guilty of booking hair appointments online).

Being a millennial also means that cash is more of a novelty than it is an actual currency – I’m the person who will look in my wallet and have a genuine moment of shock when I see coins or notes in there, as if I had no part in it arriving there in the first place! So naturally, having eftpos at the cafe is an absolute non-negotiable.
It has surprised me how many people I’ve spoken to have advised against it or are totally indifferent towards it. From a personal point of view, it would be highly unlikely that I would buy from or return to a cafe that accepts cash only. Not because I’m stubborn or like to make a point (the omission of coffee is not worth making any dramatic point) but just because I don’t have the foresight to somehow acquire real cash money to make a purchase, let alone try to navigate that situation before even being caffeinated. Oh, holy!

So here is a suuuuper quick comparison of what I know about Eftpos options right now – all based on a projection of $20K eftpos payments a month (this is an ambitious ballpark, I realise):

Screen Shot 2018-02-22 at 11.37.58 PM.png

  • SQUARE
    • These are the little white tiles you may have seen in tiny, trendy cafes – at first thought, I was totally adamant we’d use these because they seemed cheap, easy and logical to use.
    • They have a one-time payment of $29 (a bargain!) and thereafter they take 1.9% of every payment (not a bargain)
    • They do come with a free POS system, but reading real-life feedback online does not do any favours for Square, which shows that once the gimmicks are over, they put little to no effort in maintaining customer relationship.
    • For $20K of payments processed, Square = $380 a month
  • Commbank Eftpos terminals:
    • Commbank are ahead of the game with Australian banking technology. They have the Albert terminal, which has a touch screen, looks something like an iPad and makes you feel excited when a receipt is getting printed!
    • All of their eftpos options run on a monthly plan based – which we would probably slot into the $150 p/month fixture. If, however, we go above the quote for this bracket, we would have to pay 1.5% for every payment after that. Ouch!
    • Commbank also requires us to hold business accounts to use their terminal fees and pay bond-like payments for the actual terminals!
    • For $20K of payments processed, Commbank = $270 a month
  • TYRO Banking
    • Lots of cafes use this; they have direct links to Point of Sale systems and very simple I’m-here-for-business kinda machines!
    • They specialise in really fast payments with nearly 0% chance of connection issues!
    • They do a ‘simple’ charging method of $29 a month + .99% of every transaction
    • For $20K of payments processed, TYRO = $250 a month
  • ANZ BladePay:
    • This guy seems pretty great, but still too new to invest in – parts of the website are vague and a lot of the razzle dazzle features are still listed as ‘coming soon’.
    • Unable to process projected costs, due to lack of information (No one’s gotten back to me yet, but I can imagine that after today I’ll receive several phone calls in business hours tomorrow!)
  • Westpac:
    • Or, as they will now be known – the Dark Horse! Westpac have designed this killer website which gives allll the information, prices and details with really great navigation (wait, is this a website review?!)
    • They have four really simple plans, they waive the establishment fee for new businesses and you can upgrade plans at anytime.
    • Their base rate is $225 a month + 1.5% per transaction above the quota, so for $20K of payments processed, Westpac = $225 a month

I did investigate a couple of other options that didn’t even make the second round callbacks (sorry PayPal) but it has actually blown me away how different the plans have been – and if I hadn’t done my research (at least a little) we could have been paying +$155 extra a month!

I’ll be waiting to hear back from TYRO and Westpac tomorrow (mainly so I haggle them against each other) and then it’ll be set in stone to write in our business plan as another thing we can just flick the switch on once we get our incredible property (yes, I am speaking things into being right now!)

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