EFTPOS in Australia: 2025 Trends, Policy Updates & What’s Next

EFTPOS (Electronic Funds Transfer at Point of Sale) is so embedded in Australian life that it’s easy to forget how much it’s changed the way we pay. Whether you’re grabbing a morning coffee or splitting a dinner bill, EFTPOS sits quietly at the heart of the transaction—connecting banks, businesses, and customers in a tap or a swipe.

How EFTPOS Became an Aussie Staple

Australia was an early adopter of EFTPOS technology, with the first network launching in the mid-1980s. Fast-forward to 2025, and EFTPOS isn’t just a plastic card—it’s a whole ecosystem, spanning physical terminals, online gateways, and even smartphone-based payments. According to the Australian Payments Network, over 90% of in-person payments now use card or digital wallet, with EFTPOS processing over two billion transactions annually.

While debit cards remain the most common payment method, the rise of contactless ‘tap and go’ and mobile wallets (like Apple Pay and Google Pay) has blurred the lines between traditional EFTPOS and newer digital payment rails. In 2024, the Reserve Bank of Australia (RBA) mandated that merchants must offer least-cost routing for contactless payments, allowing businesses to direct transactions through the most cost-effective network—often EFTPOS—rather than defaulting to Visa or Mastercard.

2025 Policy Updates: What’s Changing?

This year brings several key regulatory and technology updates for EFTPOS:

• Least-Cost Routing Expansion: From March 2025, least-cost routing will apply not just to physical terminals but also to online payments, giving e-commerce merchants more control over transaction fees.
• New Security Standards: The Australian Payments Clearing Association (APCA) has introduced tighter data protection requirements for EFTPOS terminals, including mandatory support for tokenisation and biometric authentication on compatible devices.
• Fee Transparency: Under new ACCC rules, merchants must clearly disclose any surcharges for different payment methods, with a focus on demystifying the often-confusing costs of card acceptance.

For small businesses, these changes mean greater transparency and potentially lower costs—especially for high-volume, low-value transactions. For consumers, it means more choice in how you pay, and greater protection for your card data.

The Real-World Impact: Businesses and Consumers

What does all this mean on the ground? Let’s look at two real-world scenarios:

• Café Owner in Melbourne: With least-cost routing now available on both in-store and online orders, a busy café can save hundreds of dollars each month by directing tap-and-go payments via the EFTPOS network, which typically charges lower merchant fees than credit card schemes.
• Everyday Shopper: With enhanced security on new EFTPOS terminals, your biometric data (like a fingerprint or facial scan) can be used for authentication, making payments faster and more secure—while also reducing fraud risk.

It’s not just about cost. In regional and remote areas, EFTPOS remains a lifeline for businesses and customers who may not have reliable internet for app-based payments. And with the rise of digital wallets, EFTPOS is increasingly integrated into the ‘open banking’ environment, letting you track spending across accounts in real time.

What’s Next for EFTPOS in Australia?

The future of EFTPOS is both digital and dynamic. Key trends to watch in 2025 and beyond include:

• Interoperability: EFTPOS is being integrated with the New Payments Platform (NPP) to enable real-time transfers and richer payment data.
• Sustainability: Expect more merchants to offer paperless receipts and eco-friendly terminals as part of broader efforts to reduce the environmental impact of payments infrastructure.
• Increased Competition: With fintech challengers and new payment gateways entering the scene, EFTPOS is under pressure to innovate—offering features like buy-now-pay-later integration and advanced loyalty programs.

For both businesses and consumers, staying informed about how EFTPOS evolves is crucial for making smart financial choices—whether you’re weighing up merchant service providers or simply choosing how to pay at the checkout.