Australian Payments Plus (AP+) partnered with Google to enable eftpos functionality and least-cost routing (LCR) on Google Wallet transactions in 2025. ANZ and Suncorp Bank were the first issuers live, with other banks joining through the year. LCR penetration reached approximately 70% for in-store transactions but only 30% for mobile wallets prior to the Google integration.
Closing the Mobile Gap
Mobile wallets had been a significant gap in Australia's LCR framework. When consumers tap their phones, transactions had predominantly routed through Visa or Mastercard even on dual-network debit cards - because eftpos lacked mobile wallet integration. The Google Wallet partnership closes this gap for Android users.
Merchant Savings
The Reserve Bank of Australia found that merchants using LCR save approximately 20% on debit transaction costs by routing through eftpos rather than international schemes. With mobile wallet usage growing rapidly, the inability to route these transactions through eftpos had been eroding merchant savings.
Online Expansion
AP+ is also developing LCR for online Click-to-Pay guest checkout transactions, addressing the last major channel where eftpos routing was unavailable. Broader online rollout is planned for 2026, which would give Australian merchants LCR capability across in-store, mobile wallet, and online channels.
What This Means
Australia's LCR framework is the most accelerated domestic scheme protection mechanism in any developed market. Extending it to mobile wallets progressively undermines the international schemes' advantage in the fastest-growing payment channel. Apple Pay remains the notable holdout - Apple has resisted LCR integration, a position the RBA is actively reviewing.
Sources: Finextra, The Paypers