Ord Minnett estimates that the transaction should take into account the result of FY22. The 10-year alliance has five-year options. As part of the agreement, Bendigo and Adelaide will benefit from a complete separation of their existing dealer acquisition services. Tyro is a technology-driven, value-oriented company that provides Australian businesses with simple, flexible and reliable card acceptance solutions. Tyro is Australia`s fifth largest commercial service provider, behind the big four banks. Bendigo Bank today announced a new alliance with Tyro Payments , an ASX-rated payment solutions provider, to become the bank`s exclusive partner for its commercial banking customers. The new agreement with Tyro will support the Bank`s strategy of investing in skills and reducing complexity by providing business customers with more flexible and functional payment solutions. The Bank`s existing dealer acquisition services are currently provided by a number of third parties who provide different hardware and software components to their product. However, this new partnership will reduce the number of partners from seven to one. As part of the agreement, a new co-brand – Bendigo Bank EFTPOS/eCommerce powered by Tyro – was developed to enable the bank to offer The entire range of Tyro products to its professional customers, increase its skills and improve the overall customer experience.
Bendigo Bank EFTPOS/eCommerce powered by Tyro combines the power of the bank`s brand, partner know-how, broad distribution channels, a geographical presence and a relationship-oriented business banking capability, with Tyro`s vast distributor acquiring technical know-how. The new Bendigo Bank EFTPOS/eCommerce powered by the Tyro offer is expected to be phased in by Bendigo Bank traders from the first half of 2021. Bendigo Bank will continue to provide all other banking services to these customers. This announcement is not a significant financial transaction for Bendigo Bank, but it will eliminate the need to invest capital in a specialized market and provide a positive contribution to results and growth prospects. As part of the announcement, Tyro will also develop a new presence based on Bendigo, which will further diversify technical know-how in regional Australia. Bruce Speirs, Executive Business Banking, Bendigo Bank, said the partnership with Tyro and the development of a new co-brand are a positive development for his investment banking clients. In line with our strategy of investing in skills and reducing complexity, we are re-annualizing our Merchant service offering to help customers better manage their business and improve the leading customer experience we offer. Our new partnership with Tyro is an exciting development and I look forward to working with the new team to simplify our product offering and provide enhanced skills that will enable the Bank to further improve support for our commercial bank customers,” said Mr. Speirs.