If you're going to fling mud. Make it stick. If it doesn't, you can look pretty stupid.
Viceroy, having spotted Tyro managing a disaster, was opportunistic in quickly cobbling together some rounds of mud to sling, hoping it would stick for some easy money. Turns out it has not been so easy, but rather embarrassing for them.
In opting to add as much mud to throw as possible, what VC did was left themselves open to undermining their own credibility.
Their main line of attack, was that approximately 50% of terminals across the country was 'bricked' through a software patch.
Well firstly, management has come back to say it has never had 50% of its terminals bricked. Secondly, these terminals were not 'bricked' via a software patch, and it does not require a capital intensive repair/replacement program. After three rounds, Tyro leads: 3 - 0.
Next, VC alleged that Tyro had effectively 'bricked' Westfield gift cards. This was based on their 'research', which involved "calls to Westfield shopping centres" (posing as customers). That's right. VC probably spent their time talking to young customers service staff at the concierge desk who spend most of their time showing desperate customers where the toilets are, and occasionally processing gift cards... to help VC determine if managing Tyro's 'back end' was responsible for 'bricking westfield gift cards'. Turns out they were completely wrong.
This was VC's piss weak response when Tyro proved they were wrong:
"Our extensive channel checks with Westfield Centres across Australia told us that it was the case that Westfield gift cards were not functioning properly. Posing as customers, this was the advice we were given. Clearly this was not communicated clearly by either party."
Yep, VC screwed up and now they're blaming the Westfield customer service staff for not properly briefing them on where the data for gift cards are stored and managed. Who would've known, that these customer service staff probably didn't understand the technology underlying these machines, given most of their day is spent just punching in some numbers to load up gift cards and directing people to the nearest toilet? I'm sure VC thought they were being very clever, but I must say, this was very dumb and a complete waste of time. Tyro extends its lead 4 - 0.
VC also alleged TYR had no business continuity plan. TYR responds by saying:
"Tyro has a Business Continuity Management Policy and a Business Continuity Plan. In accordance with these plans Tyro immediately initiated its Major Incident Management Response upon the incident being identified to manage the recovery activities."
VC cops this counter jab to the face and moves on, weakly saying "We will not argue over the subjective efficacy of Tyro’s disaster recovery plan." Tyro extends its lead again 5 - 0. VC would have actually been better placed on this front by instead of trying a haymaker and alleging Tyro had no plan (with no evidence to allege as such), but perhaps throwing a jab, suggesting "Well if you had one, and this is it... it's clearly pretty crap". Except they didn't, they went for the bold exaggerated, unsubstantiated claim and missed.
Next round, VC attempts a right hook, alleging that "Tyro has no idea - and no way to determine - how many of its terminals are actually functional". VC hit nothing but air and cop a straight right to the face, with Tyro responding that "Tyro has complete visibility of all its functional terminals - specifically these terminals are actively and continuously communicating with Tyro’s payment switch." Tyro leads 6 - 0.
Now, VC are trying to change the argument, saying Tyro aren't providing the numbers on the terminals and are instead focused on the number of merchants affected. Which numbers are more important is another discussion but the point is at this point, VC have lost so much credibility, no one is listening to their attempts to change the focus of the discussion. Everyone is just seeing VC's shots miss and countered with each counter landing hard.
Having lost most of the rounds, what follows is VC trying to pivot away from, "the company is not telling you the truth", towards "their business model sucks, their technology is old and their competitors are better"... which is pretty pathetic. That argument has been discussed to death including here on HC, TYR vs Square vs etc etc, there is nothing new.
To see how pathetic VC has gotten, in attempting some low blows, you only need to look at their pictures taken on Saturday night of the Melbourne office of Amtek, alleging that no work was being done because the lights were off and there were no cars outside.... except Tyro says the machines are getting their software updates in Sydney - haha oops!
I'm sure the boys at VC thought they were being so clever driving to Amtek's office in Melbourne late at night, but the thought of them staking out the wrong place is almost as hilarious as the thought of them trying to get the concierge staff selling gift cards to explain to them how the technology for gift card works and if it was being held by Tyro, Westfield or some other provider like EML Payments.
Now, I am under no illusions that Tyro is facing a big disaster and this could have not only short term impacts, but significant damage its brand, and competitors are likely to try to capitalise on it, but that is another discussion that is already well known, which doesn't require people to annoy staff at the concierge desk at your local Westfields.
Disclosure: No holdings in tyro, but I did previously own this stock for a very short period (having bought and sold it after a couple of weeks during the pandemic in April last year).
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