There’s a 3rd party online ordering service in Australia that a lot of restaurants are jumping on board with (https://about.mryum.com/).
I had a chat with them and they’ve got a pretty responsive tech team and keen to integrate with sambapos.
What would be the process to make this integration possible?
Would the samba team be open to this?
It’s all about business. How many Sambapos installs would there be? The dev team would need to understand the demand to dedicate resources to it.
Can we get a revenue stream from it? If not we would probably need to charge for the integration through our market.
If you can help us understand this that would be great.
There are costs for upkeep on the integration. My approach would be to try and secure a revenue share for SambaPOS. Then look at the demand.
Understand Jesse.
I think the online ordering platform is up and coming so not sure how much demand there would be.
To make a stronger foothold in the Australia market, I think it might be better to actually start with EFTPOS integration with the two biggest players here (Tyro and PC-EFTPOS).
Payment processing integration would be good. There is a lot we have to consider and negotiate with them first. One of our partners in the US has a presence in AU as well. We may be able to leverage that when the timing is right.
If it helps, here’s the landscape of credit card terminals in Australia to simplify things:
PC-Eftpos (now known as Linkly) - integration company that connects the pos software to the card terminal of all major Australian banks. Having this one integration would cover 60-80% of all Australian credit card terminals.
Tyro - payment processing company that is quite active in integrating with various pos software. Have roughly 20-30% of card machines in Australia.
For a lot of fast food/takeaway shops here, having the eftpos integration is a dealbreaker between choosing Sambapos or going for an inferior software w eftpos capability.
Let me know if there’s any way I might be able to help in the process as I’d like Sambapos to be the go to solution here!
That is known as a gateway. In most cases we prefer to partner with the processor and then we seek a gateway to use for our partnership. We usually can get a much better deal for revenue share of the payment processing for our resellers.
We want to share in the payment processing with our resellers. There is a lot of money involved in payment processing and its foolish if we allow another company to just keep all of that money. So we seek partnerships for revenue share. We are not interested in just allowing anyone to integrate and reap heavy profits off our resellers and customers.
Basically there is much more to payment processing than just integrating and accepting cards. There is a lot of underlying business we have to consider.
Ahh, thanks for this. This helps me get a bit more perspective of all the moving parts.
So it sounds like you would either go to Tyro and/or one of the major Australian banks directly?
What would help us the most is to understand more about payments in AU. Every Country is not the same with regulations etc.
We need to study it and any help is appreciated. Payments can get very complicated and it is a highly lucrative business. It can also get very ugly. So we need to fully understand it in each country that we enter.
So when someone is starting a small business in Australia, business owners usually have 3 options when choosing how to accept credit cards.
Go for a quick mobile solution like square
Get a merchant facility from tyro which integrates to various pos solutions which then transfers money to the local bank
Go to their local bank and ask for a credit card machine to be included with their business plan
The third option is by far the most common occurrence as local banks seem to charge the best rates here. The bank that is most popular amongst small-medium size business owners is Commonwealth Bank of Australia (CBA).
From my knowledge, the credit card machines that are supplied by all major banks are only compatible with software provided by Linkly (formerly PC-Eftpos).
Is there any more specific info you’d like me to ask a company/bank here?
Can you give me the webpages to some of the banks. In the usa the banks usually dont process anything. They get a partnership with a processor the same as we can do.
Here is the deal. Mastercard, and visa do not process their own cards. They set an interchange rate and then processors/banks can charge a markup to cover their costs of processing and to earn money off their technology. You can also have gateways which is the tech that does the work. Some gateways are independent and will integrate with any processor and they charge a fee for that. Some gateways are owned by the bank and they don’t charge a fee because they get money from the processing markup.
Then there are also companies that don’t do the processing. They just aquire merchants for the processor and add a markup for that and share revenue with agents etc.
Ideally partnering with the main processor is best as you can often get a better revenue share and have more control in the business. But sometimes you may partner with a bank who holds the processing partnership.
Devices don’t matter. Devices are just machines the gateway chooses to support and are then purchased from manufacturers and sold to merchants.
Banks usually offer competitive rates because they will tie in other services they offer to get money from the merchant. But if we study it enough the we can. Get a partnership with a processor or ISO that benefits us and our resellers which will also benefit our customers by offering good rates.
Amex and discover are similar except they sometimes process their own cards. Amex if over 1,000,000.00 per year is processed will require the merchant to deal directly with them for rates and typically they charge a higher rate.
Visa and MC do not process their own.
In most cases we want to partner with the processor as it gives us the best deal and we can offer a markup that keeps rates low and still earn a revenue for resellers and for us. Someone is going to earn that revenue and we prefer it to be us so we can ensure we provide the better rates and options for customers.
I highly recommend you study fintech and payments processing don’t just rely on your bank. Banks want your business so they often will withhold that information from you.
Wow, this really opened my mind. I researched fintech and am amazed how behind Australia is with its payment processing!
Here’s a link to the most popular bank here along with their credit card facility.
Most devices that banks use are either Ingenico or VeriFone.
There’s also a debit card system we use here known as eftpos Australia which the banks are in charge of - more info here.
With all this, who would be the payment processor we’d try to partner up with?
We would need to research it honestly. We plan to offer payments in every country. Obviously we cant do it all at once because of the complexity in the partner relationships. AU has come up several times we will research it. There are other complexities too like will the processor pay the revenue share directly to SambaPOS in Turkey or will we have to establish a business entity in AU.
I follow POS software companies closely here and the most popular solutions have been the ones that offer integrations with both pc-eftpos (Linkly) and Tyro.
In terms of revenue share, Sambapos is more likely to come to a mutually beneficial relationship with Tyro.
However, Sambapos would be able to sell many more licences if they partner with pc-eftpos as well (as they can help integrate with all major Australian banks).
The majority of users choose sambapos because of the flexibility it offers. And if it can offer the same flexibility to integrate with any Australian Bank via the pc-eftpos gateway - Sambapos would be the go to solution for the fast food/takeaway businesses here.
If the payment integration is not possible, sambapos will be a solution predominantly to restaurants here. And right now, there’s a lot more takeaway businesses being opened than restaurants.
I hope this insight can somewhat guide sambapos which direction they wish to pursue. And it would mean a lot if we can be kept in the loop regarding this project.
Bit late to Join but Ive just seen the convo.
An extra info that might help.
In Australia is ILLEGAL the restaurant or unauthorized parties to make profit from the card charge. For example I charge 1.3% flat for every card but Visa charges 0.75% I can’t get any direct benefit from this 0.65% that is left behind.
However, law windows are everywhere. Tyro for example can overcharge a bit in order to cut your monthly subscription. Another law window is to get loan from Tyro financial services and guess what… interest or part of the loan is paid from the charges.
Anyway, back to the original request
Mr yum is like a must with these contactless menus during covid and tyro now is major EFTPOS player in hospitality.
An integration should boost SambaPOS in Aussie market as right now looks very… “behind” without any market standard integration, despite is the most advanced system out there. For my opinion, Australasia’s market growth will stay behind without integrations but integrations wont happen thanks to current growth. Sounds like the dilemma of the chicken and the egg
Hope it helps into the bigger picture.