Highlights

  • Network of over 45,000 EFTPOS terminals serving approximately 18,000 merchants across Australia and New Zealand
  • FY2025 revenue of NZ$104.7 million, up 8.5%, with Australia driving the majority of new terminal deployments
  • Active engagement with RBA payments review process addressing surcharging regulations
  • New Zealand acquiring market entry underway as Stage 2 of the Company's three-stage strategic plan

SmartPay Holdings Limited (ASX:SMP, NZX: SPY), with shares at A$0.75 as at 30 October 2026, is one of Australasia's most active merchant payments providers, having deployed more than 45,000 EFTPOS terminals across Australia and New Zealand to serve a growing base of approximately 18,000 small and medium business merchants while simultaneously navigating a complex regulatory environment shaped by the Reserve Bank of Australia's ongoing review of surcharging practices in the Australian payments market.

Trans-Tasman EFTPOS Network at Scale

SmartPay's core business is the deployment, management, and servicing of EFTPOS payment terminals to merchants in the retail, hospitality, healthcare, and services sectors across Australia and New Zealand. The Company's more than 45,000 terminals make it one of the largest independent EFTPOS networks in the region, with the majority of recent terminal growth concentrated in Australia. SmartPay primarily serves small and medium business merchants who require cost-effective, reliable payment acceptance solutions, and has built its Australian merchant base through direct sales and its Smartcharge surcharging solution, which allows merchants to pass the cost of electronic payments to customers at the point of sale. For the financial year ended 31 March 2025, SmartPay reported revenue of NZ$104.7 million, representing growth of approximately 8.5% on the prior year.

RBA Payments Review: A Regulatory Headwind

The Reserve Bank of Australia has been conducting a comprehensive review of the payments system, with a specific focus on surcharging practices. SmartPay's Smartcharge product allows merchants to apply a surcharge to card transactions, passing the cost of processing fees to consumers. The RBA has been examining whether current surcharging practices are consistent with consumer protection outcomes and competition principles. SmartPay has actively engaged with the RBA review process and prepared detailed responses to questions about its Smartcharge solution, explaining its mechanics and the benefits it provides to small merchants who would otherwise bear the full cost of card acceptance. The Company has noted that SmartPay is also able to offer non-surcharging solutions to merchants who prefer a flat monthly fee model.

New Zealand Acquiring – Stage 2 Strategy

SmartPay's three-stage strategic plan calls for entry into the New Zealand acquiring market as Stage 2, following the establishment of the Australian merchant terminal business as Stage 1. New Zealand represents a significant untapped opportunity for SmartPay given its existing infrastructure, brand presence, and merchant relationships in that market through its original New Zealand EFTPOS rental business. The Company executed a Payment Facilitator Agreement for New Zealand in May 2024, establishing the regulatory and operational foundation for providing payment acquiring services to New Zealand merchants directly. Entering the New Zealand acquiring market would allow SmartPay to capture a larger share of the revenue generated by each New Zealand merchant transaction.

Competitive Landscape and Market Position

SmartPay competes in the Australian merchant payments market against the major banks, international players such as Square and Tyro, and various fintech payment solutions providers. The Company's differentiation is its focus on the small and medium merchant segment, its competitive terminal hardware and fee structure, and the Smartcharge surcharging solution that has been popular with merchants seeking to eliminate or reduce their own payment processing costs. The Company's scale of over 45,000 terminals and 18,000 merchant relationships creates an operational leverage opportunity as the business matures and the cost of servicing existing terminals declines relative to the revenue they generate.