Australian Payments Plus partners with Google to offer Least Cost Routing on Google Wallets
Australian Payments Plus (AP+) has worked with Google to roll out eftpos functionality and Least Cost Routing (LCR) on transactions made via the mobile Google Wallet, allowing merchants to choose to have more payments routed via the lower-cost eftpos network.
ANZ and Suncorp Bank are the first two issuers live with eftpos multi-network debit cards in the Google Wallet, with other issuers to follow over the course of 2025. Multi-network debit cards allow payments to be processed either through the eftpos network or one of the international debit networks, such as Mastercard or Visa.
“Mobile wallet payments now account for 40% of all in-person transactions, and that share is expected to continue growing in coming years. Enabling merchants to route those wallet payments to the eftpos network brings further competition in the mobile wallet space, which we know lowers the cost of payment acceptance,” said Adrian Lovney, AP+ Chief Payments Officer.
Previously multi-network debit cards loaded into Google Wallet defaulted to international card networks, but now the lower cost domestic eftpos network will be available as a routing choice. According to an RBA report from April 2024, the cost of accepting debit card transactions is nearly 20% lower for merchants that have LCR turned on compared with those with LCR turned off.
“We’re proud to work with the eftpos network, banks including ANZ and Suncorp Bank, and the RBA to bring least cost routing to Google Wallet in Australia. It will give Australians greater choice and control over their payments and help Australian retailers to reduce payments costs, in line with Google’s broader efforts to support Australian businesses,” said Naomi Gaskell, Manager, Payments, Google Australia.
AP+ started the rollout of LCR across selected mobile wallets in 2024. From today, ANZ and Suncorp Bank Visa debit cards directly added into the Google Wallet will have LCR enabled, with onboarding for remaining issuers to continue this year.
The continued rollout of LCR to mobile wallets is a key part of AP+’s ongoing efforts to lower the cost of payments. As part of this commitment, AP+ also lowered eftpos interchange rates for eligible small business merchants in December 2024, and in May will further reduce issuer scheme fees by 22% and acquirer scheme fees by 5%.
“AP+ is committed to lowering the wholesale cost of payments across our payment schemes. It’s all part of having a strong and competitive payment system that serves the needs of businesses and consumers in Australia,” said Lovney.
