Google Wallet Enables Least-Cost Routing in Australia

Australian Payments Plus (AP+) has partnered with Google to introduce eftpos functionality and least-cost routing (LCR) for Google Wallet transactions in Australia. This move allows merchants to bypass costly international card networks and opt for the lower-cost eftpos network.

Previously, multi-network debit cards in Google Wallet defaulted to international networks. With this update, ANZ and Suncorp Bank are the first issuers to enable eftpos multi-network debit cards in Google Wallet, with more issuers expected to follow in 2025.

According to the Reserve Bank of Australia (RBA), merchants with LCR enabled save nearly 20% on debit card transaction costs compared to those without it.

Adrian Lovney, Chief Payments Officer at AP+, stated, “Mobile wallet payments now make up 40% of in-person transactions. Enabling eftpos routing brings competition to the mobile wallet space, reducing payment acceptance costs for merchants.”