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#Business Model/Strategy
Added 4 months ago

Tyro is an Australian bank and operates under the supervision of the Australian Prudential Regulation Authority (APRA). Tyro provides credit, debit and EFTPOS card acquiring, Medicare and private health fund claiming and rebating services to Australian businesses. Tyro takes money on deposit and offers unsecured cash-flow based lending to Australian EFTPOS merchants.

Australia’s fifth largest merchant acquiring bank by number of terminals in the market, behind the four major banks

small and medium-sized enterprises -  In particular, focus on three verticals – Health, Hospitality and Retail.

Revenue and income is generated from a variety of sources:

  • payments revenue and income: which include Merchant Service Fees, terminal rental income, other fee income, and terminal and accessories sales;
  • lending income: which primarily consists of interest earned on merchant cash advances;
  • investments income: which includes interest income from investments; and
  • other revenue and income.

Key expenses can be grouped into:

  • payments direct expenses: which include scheme and interchange fees; integration, support and other fees; and cost of terminal accessories sold;
  • interest expense on deposits;
  • operating expenses: which include employee benefits and share-based payments expenses; other operating expenses (such as contractors, marketing expenses, third party technology costs, communication, recruitment and other administration costs); and lending and non-lending losses;
  • depreciation and amortisation; and
  • net lease interest expense.


Note: Operating at a loss

Australia's A$2.3 billion in annual net merchant fees currently having around 10% market share

Morgan Stanley forecasts Tyro doubling target market share to 20% by FY 2024/25, increasing gross revenue to $A538 million by FY 2024, and more than doubling gross profit over the same time frame to A$217 million.

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