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Increased investment allows it to offer ‘mates rates’ to local customers, the Australian start-up says.
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Airwallex slashes price of processing online payments
28 March 2023
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Airwallex has cut its processing cost of online payments for domestic credit and debit cards by almost 30 per cent, saving businesses up to $12,000 a year it says.
Head of strategy for Australia at Airwallex Matthew Sek said the firm’s decision would add up for many businesses when they needed help most.
“We know the cost of doing business has only been going up, so cutting back payments costs will mean businesses can keep more of what they earn,” said Mr Sek.
“These mates rates for our customers means cheaper products and services for their customers and more growth.”
“We’ve made a commitment to invest in our Australian customers, and as they succeed so do we.”
From Monday, Airwallex’s new and existing Australian business customers would see a 45 basis point reduction in what it cost them to process online payments by domestic credit and debit cards – down from 1.65 per cent to 1.20 per cent per payment plus 30 cents.
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The firm said this meant an average business conducting $100,000 a month of domestic transactions in Australia could save up to $12,000 per year in transaction fees.
Mr Sek said the reductions were a result of Airwallex’s spending on development.
“We’ve been investing in our online payments infrastructure as we grow which means we can pass on the cost savings by dropping our prices for our merchant customers,” he said.
“We’re a modern payments platform built from the ground up for modern businesses of any size – which means we don’t have all the baggage of banks or other legacy payment platforms.”
Building out its inclusive suite of financial products for customers also helped the firm to reduce fees.
“What we’ve seen is that the cost of doing business is going up and our customers are looking for cost savings where they can,” said Mr Sek.
“The investment into building this generation of products has allowed us to reduce our cost and pass that onto our customers.”
Mr Sek said the firm predicted the fee reduction would see further growth in the business.
“We’ve made the decision to invest in our customers, we believe this move will fuel the growth of our customers and, in return, it’ll fuel our growth at Airwallex,” he said.
“I think with the cost of doing business going up, customers are going to be very attracted to an offer like this that can save them thousands of dollars each year.”
Airwallex processes almost $50 billion in transactions each year and is used by more than 6,000 businesses in Australia.
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