Westpac commiting to upgrading 100,000 terminals to remain...

Westpac commiting to upgrading 100,000 terminals to remain competitive is probably contributing to the SP hammering too.

From AFR yesterday -

Westpac Banking Corp has moved to counter Square’s momentum in the small business payment device market, updating its fleet and turning to open-source software that will allow it to create credit products at the point of sale.

Westpac will issue 100,000 lightweight, mobile “Eftpos Now” terminals to SMEs, four months after Commonwealth Bank announced a similar upgrade to its ageing Albert fleet, as Square’s devices and accompanying sales software rise in popularity.

Westpac’s Chris de Bruin: “We are moving to a new software structure: from closed to open.” Edwina Pickles

Westpac’s new fleet will widen the gap between National Australia Bank and ANZ, which are slipping on smart payment terminal functionality as big global companies attack the market. These include not only Square but also Stripe, an Irish-American private company valued at more than $120 billion. The CBA and Westpac hardware upgrades also raise the stakes with Tyro, whose terminals are popular in hospitality venues.

Tyro reports its half-yearly results on Monday, and Block (of which Square is now a part) will report its full-year results on Friday morning Australian time.

Westpac has also created a simplified pricing structure that undercuts Square and Commonwealth Bank.