In an attempt to challenge Australia’s “Big Four” banks, point-of-sale solutions provider Tyro Payments has received funding to become the first Aussie tech company to receive a banking license from the Australian Prudential Regulatory Authority.
The license allows Tyro to accept deposits and advance money to Aussie businesses.
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The company recently landed $100 million combined from TDM Asset Management, Tiger Global and Aussie tech entrepreneur Mike Cannon-Brookes. Tyro Payments was created to enable point-of-sale debit and credit card payments, and currently works with 14,000 Australian businesses while processing over $8 billion annually in transactions.
Tyro Payments intends to use its new funding to increase its engineering staff by 300 employees. The company’s gross revenue increased by 38 per cent to $72.4 million in 2015, and has had a compound annual growth rate of 38 per cent over the past five years.
According to CEO Jost Stollmann, the nation’s top banks of Westpac, ANZ Bank, NAB and Commonwealth Bank haven’t made much effort to help small businesses manage its finances and secure loans. Therefore, Tyro Payments intends on making it and easier and more efficient process through integrating different software systems in addition to offering cash flow-based loans.
“Tyro is poised for breakout growth, driven by innovation and commitment to fair and transparent banking,” said Stollmann. “We will transform banking for SMEs and provide them with frictionless solutions tailored to their needs, so they can concentrate on growing their business.
“It’s an exciting time.”