Tyro Payments, Australian financial tech company, is planning to challenge country’s leading retail banks. It has scored $72 million in funding from Tiger Global, TDM Asset Management, and Atlassian co-founder Mike Cannon-Brookes. It currently works with 14,000 Australian businesses and processes over AUD $8 billion in transactions each year.
The company, founded in 2003, is turning its ambitions to banking after becoming the first Australian tech company to receive a banking license from the Australian Prudential Regulatory Authority. It plans to compete with the top four retail banks in Australia: Commonwealth Bank, Westpac, Australia and New Zealand Banking Group, and National Australia Bank.
According to the chief executive officer Jost Stollmann, ‘They totally dominate the Australian market and are the most profitable banks in the world. We consider ourself a friend of financial tech startups and new growth companies that want to challenge this oligopoly.’
Though Tyro wants to with compete with the four leading banks, Stollman said that they haven’t changed their business practices to making managing money and securing loans easier for small businesses in Australia. Tyro Payments’ platform wants to make banking faster and easier by integrating with different software systems, and the company offers cash flow-based loans. Representing a compound annual growth rate of 38 percent over the past five years, it claims its gross revenue grew 38 percent to $72.4 million in 2015.