EFTPOS in Australia: 2026 Trends, Policy Updates & What’s Next

Australia was among the first countries to widely adopt EFTPOS technology, with the system rolling out in the 1980s. Since then, EFTPOS has grown from a simple card-based payment method to a broad ecosystem. Today, it covers physical terminals, online payment gateways, and mobile wallets. Most in-person payments now use cards or digital wallets, and EFTPOS processes a significant share of these transactions each year.

The rise of contactless payments and mobile wallets has blurred the lines between traditional EFTPOS and newer digital payment systems. Debit cards remain popular, but Australians are increasingly using their smartphones and wearables to pay, often through the same EFTPOS network that supports physical cards.

This year, several important changes are shaping the EFTPOS landscape in Australia. These updates are designed to improve transparency, security, and affordability for both businesses and consumers.

Expansion of Least-Cost Routing

Least-cost routing (LCR) allows merchants to process contactless card payments through the most cost-effective network, rather than defaulting to international schemes like Visa or Mastercard. In 2026, LCR is being extended beyond physical terminals to include online payments. This gives e-commerce businesses more control over their transaction costs, which can be especially valuable for those handling high volumes of small transactions.

Enhanced Security Standards

Security remains a top priority for payment systems. New requirements are being introduced for EFTPOS terminals, including support for tokenisation and biometric authentication on compatible devices. These measures aim to better protect cardholder data and reduce the risk of fraud, while also making the payment process faster and more convenient for customers.

Greater Fee Transparency

Merchants are now required to clearly disclose any surcharges for different payment methods. This move is intended to make the costs of accepting cards more transparent for both businesses and consumers. By understanding these fees, merchants can make more informed decisions about which payment options to offer, and customers can choose how to pay with greater confidence.

The latest updates to EFTPOS policy and technology have practical implications for people across Australia.

For Businesses

• Cost Control: With least-cost routing available for both in-store and online payments, businesses can better manage their transaction fees. This is particularly beneficial for small businesses and those with high transaction volumes.
• Security: Enhanced security requirements mean that businesses need to ensure their payment terminals are up to date. While this may involve some investment, it also helps protect against fraud and builds customer trust.
• Transparency: Clearer rules around fee disclosure make it easier for businesses to communicate costs to customers and avoid confusion at the checkout.

For Consumers

• Choice: Consumers have more options for how they pay, whether it’s with a physical card, a smartphone, or a wearable device. Least-cost routing can also help keep costs down, as merchants may be less likely to pass on high surcharges.
• Security: New authentication methods, such as biometrics, make payments both safer and more convenient. Consumers can expect faster transactions and greater protection for their data.
• Access: In regional and remote areas, EFTPOS remains a vital payment method, especially where internet connectivity may be limited. The continued reliability of EFTPOS ensures that people in all parts of Australia can participate in the digital economy.

EFTPOS is not standing still. As payment preferences shift and technology advances, the system is adapting to meet new demands.

Integration with Real-Time Payments

EFTPOS is being integrated with the New Payments Platform (NPP), which enables real-time transfers and richer payment data. This means that businesses and consumers can expect faster settlement times and more detailed transaction information, making it easier to track spending and manage finances.

Focus on Sustainability

Environmental considerations are becoming more important in the payments industry. More merchants are moving towards paperless receipts and eco-friendly payment terminals. These changes help reduce the environmental impact of payment infrastructure and align with broader sustainability goals.

Growing Competition and Innovation

The payments sector is seeing increased competition from fintech companies and new payment gateways. This is driving innovation within the EFTPOS system, with features such as buy-now-pay-later integration and advanced loyalty programs becoming more common. For both businesses and consumers, this means more choice and potentially better value.

EFTPOS is set to remain a central part of Australia’s payment landscape. As technology continues to evolve, we can expect further integration with digital wallets, open banking platforms, and real-time payment systems. The focus will likely remain on improving security, reducing costs, and providing greater flexibility for both merchants and consumers.

For businesses, staying informed about changes to EFTPOS can help with making smart financial choices, from selecting payment service providers to managing transaction fees. For consumers, understanding how EFTPOS works and what new features are available can make everyday spending safer and more convenient.

In summary, EFTPOS in Australia is adapting to new challenges and opportunities in 2026. With ongoing updates to policy, technology, and industry practices, both businesses and consumers stand to benefit from a payment system that is secure, transparent, and responsive to their needs.