Australian Payments Plus (AP+) is working with payment technology firm Giesecke+Devrient (G+D) to bring eftpos and least-cost routing (LCR) to Click to Pay, marking what the companies say is a global first for online debit card payments.
AP+ brings together three domestic payment providers, BPAY Group, eftpos and NPP Australia, into one integrated entity.
Click to Pay provides a streamlined checkout experience that removes the need for customers to manually enter card details.
The addition of eftpos means eligible transactions can be routed automatically to the lowest-cost network under LCR settings.
While most Australian debit cards support both eftpos and international networks, online guest checkouts have historically lacked support for LCR.
In contrast, LCR is already enabled for 70% of in-store payments and around 30% of mobile wallet transactions.
Payments made via Click to Pay will use tokenisation, replacing card numbers with secure digital tokens.
Transactions routed through eftpos will be processed domestically, which AP+ says helps meet Australia’s security, privacy, and data sovereignty standards.
The Reserve Bank of Australia (RBA) has supported wider use of LCR to foster competition and lower costs.
In an April 2024 report, the RBA found that merchants with LCR enabled paid nearly 20% less to accept debit card payments compared to those without it.
The solution is currently in pilot phase and is expected to begin rolling out in early 2026.
“Enabling least-cost routing in the online Click to Pay experience is an important evolution in how businesses in Australia can manage the cost of accepting payments.
It aligns with the RBA’s policy direction, with our own commitment to lowering the cost of payments, supports greater competition in card payments, and delivers more options for merchants.”
said Adrian Lovney, Chief Payments and Schemes Officer at AP+.
“G+D is proud to partner with AP+ in the delivery of its Click to Pay solution, enabling eftpos in these digital payment flows.
This is a global first dual-network debit card implementation, providing Australian consumers a secure and simplified experience,”
said Gabrielle Bugat, CEO of G+D e-Payments.
Featured image: Edited by Fintech News Singapore, based on image by artbot via Freepik
