Westpac is stepping up in the crucial domain of ‘acquiring’ payments on behalf of merchants, with the momentum buttressing the growth of its business bank.

 

The number of ‘new merchant points of presence’ Westpac put at 36,100 over the year to September 2024, the investor discussion pack for the bank’s 2024 full year results shows.  This was up from 19,700 new merchants last year.

 

Last year, Westpac rolled out Eftpos air. This allows sole traders and micro businesses to process in-person payments via a compatible phone or tablet. This product rivals the hugely popular payments processing from non-bank Square.

 

Peter King, the outgoing CEO, can claim to have a first mover advantage with Eftpos air, at least relative to domestic rivals.

 

King also talked up Eftpos Flex, a newer product; a “high-speed cost-effective terminal that integrates with more than 500 point-of-sale systems.”

 

Partly thanks to the revival of its payments products, over the last year Westpac opened 119,000 new business transaction accounts, up from 102,000 accounts opened by new businesses in FY2023.

 

The bank reported growth in business lending of nine per cent last year, which is well ahead of system. Westpac said it was writing new business as much higher growth rates in targeted sectors such as health, agriculture and professional services.

 

“Innovations in merchant and other payments capabilities, along with investment in people and simplification, have driven momentum in business banking” King said.

 

Paired with above system growth in mortgages and household deposits, King exits Westpac (in December) with the bank producing the most credible results it has in years.

 

Net profit fell 3 per cent to $6.99 billion over the year to June.