- The number of cashless transactions has surged amid the COVID-19-induced lockdowns and social distancing measures.
- Businesses now prefer cashless transactions to avoid human contact and thus curb the spread of the virus.
- More and more companies are adopting the POS model to streamline their operations, improve revenue, and reduce cost.
- The growing acceptance of POS could be an opportunity for EFTPOS providers like Tyro, the fifth-largest merchant acquiring bank by various terminals in the market.
Restaurant Businesses during COVID-19 crisis:
By now, we all are aware of the level of damage the novel coronavirus, SARS-CoV-2 has caused the restaurant, café and bar businesses. People engaged in these businesses were forced to close temporarily under lockdown measures to prevent the virus spread. In such a situation, it was not easy for these chains to shift their entire operation to takeaway or online orders. However, the fintech players, with industry-specific solution, made the process easier for the restaurants.
The intervention was the need of an hour for these businesses to pull up their socks and stay afloat, with the demand shifting more and more towards takeaways and home deliveries.
Changes in the Restaurant business post lockdown ease in Australia
With the relaxation in lockdown restrictions and opening of these businesses, café, restaurants, and bars, most of the people have switched to the cashless transaction.
Most businesses have started accepting cashless payment, or they accept orders online to avoid human contact and thus, curb the spread of the virus. Restaurants, pubs and cafes have taken steps to minimise the physical contact between the staff and the customer by accepting cashless payment.
Why are Restaurants switching Digital POS?
COVID-19 has disrupted dining trends, and people now prefer using technology to place an order via apps. The restaurants are seeking to include digital ordering to speed up the ordering process and providing services to more customers.
The biggest advantage of the adoption of digital POS is that it improves order accuracy and simultaneously, the kitchen staff can maintain the track of the tickets/orders. Another advantage of digital POS is that payments can be accepted at the customer’s table, thus, making the process of bill payment hassle-free and streamlined.
Not only are the big restaurants adopting this technology, but quick-service restaurants are also seen implementing counter-top based touchscreen devices. Through these devices, customers can swipe quickly, tip and pay. The restaurants are also deploying payment kiosks and self-serve ordering.
With this technology, one could ensure order accuracy and reduce lines. With the advancement in the POS technology and boom in these sectors, the businesses could use the POS system to streamline their operations, effective management, and services.
In this backdrop, let us look at one such ASX-listed Company, Tyro, know its business and see how the Company can benefit from the present environment.
Tyro and its business:
Tyro Payments Limited (ASX:TYR) was launched in 2003 and has evolved as Australia’s largest EFTPOS provider of all Authorised Deposit-taking Institution (ADIs) outside the big four. Tyro is a technology-focused and values-driven Company that offers Australian businesses with payment solutions as well as value-adding business banking products.
In 1H FY2020, over 32,000 Australian merchants partnered with Tyro. During this period, the Company processed over A$11.1 billion in transaction value and generated A$117.3 million in revenue. Over A$37 million were processed in loans and held merchant deposits totalling A$39.7 million.
When Tyro started, the goal was to be the most efficient acquirer of electronic payments in the country. It also had a track record of innovation, creating purpose-built solutions and made it first to market. With this, Tyro became the first Company that received an Australian specialist credit card institution licence in 2005. This licence then later got replaced by the award of an Australian banking licence.
The core business of the Company is offering payment solutions, and it uses its proprietary core technology platform to enable credit and debit card acquiring. The offerings provided are improved by the features purpose-designed for those merchants who opt to become a partner. These features are:
- Point of Sale systems integrations.
- least-cost routing (Tap & Save).
- alternative payment types like Alipay.
Tyro has recently expanded into eCommerce.
How can Tyro benefit in the present environment?
The best part of Tyro is that it provides its customers with a customised payment feature which includes split bills, bar tabs, tipping and more. Whatever might be the point of sale system, Tyro provides solutions that fit as per the industry requirements which could be either cafes, restaurants, bars, or accommodation.
As highlighted above, Tyro is the EFTPOS provider, and the customers can set a maximum limit of their expenditure and can keep their cards in the pocket. It also allows customers to pay at the table by bringing up their bill via Tyro’s mobile EFTPOS machine rather than at the POS, possible through its Pay@Table integrated payments functionality.
Another advantage with Tyro is that the customers can split bills at the table and make payment in their way.
Tyro also offers CounterTop EFTPOS, which makes payment fast and straightforward. Some features include:
- Takes payment in less than 1.6 seconds. Thus, saving time of the customer and at the same time reducing the queue time.
- Combines with various POS & PMS and processes transactions faster.
- Accepts tap and go payments making the transaction seamless.
- Provides flexible connectivity.
- Offer maximum security, possible through PIN shield.
- It has a built-in advanced thermal printer.
- It also has secure data storage which protects your business as well as customers.
It is essential to have a correct EFTPOS to improve the business, and with Tyro’s EFTPOS, the customers could maximise revenue and minimise cost. It is fast, efficient, and secure, and importantly it is easy set-up.
A Glance at the Trading Update:
On 29 June 2020, Tyro released its trading update for the balance of FY20 every week.
On 30 June 2020, TYR shares last traded at A$3.500, up 2.941% compared to the previous close. The Company’s market cap stood at A$1.7 billion, with ~498.56 million shares outstanding.