Both Australia and New Zealand have seen major changes in how people pay for goods and services over the past decade. For instance, cash payment rates have dropped as contactless transactions have become the norm among customers.

At the same time, businesses now expect far more from their payment systems than simply processing card transactions.

Against that backdrop, the acquisition of Smartpay by Shift4 has prompted many questions across the payments industry. Particularly by retailers, hospitality venues, and technology analysts who are now unsure of what this deal could mean for the future of EFTPOS technology across both sides of the Tasman.

One thing is for sure. The move comes at a time when most businesses are seeking smarter tools, faster payment experiences, and better-run systems that align with their overall digital strategy. Let’s explore what might happen now that the deal has been completed.

Why Is Shift4’s Acquisition of Smartpay Getting So Much Attention?

Shift4’s Acquisition of Smartpay has attracted plenty of attention, both in the media and across the business world. Not least because it combines a global payment technology company with one of the best-known EFTPOS providers in New Zealand and Australia.

Smartpay has long been associated with providing businesses with flexible EFTPOS machines and merchant payment services. Shift4 New Zealand and Shift4 Australia, on the other hand, have steadily built a strong international reputation over the years for their integrated payment technology and commerce solutions.

Many industry observers see the acquisition as a reflection of a broader shift across the payment technology space. One where providers are moving beyond basic card terminals and into connected commerce ecosystems.

At the same time, retailers today are becoming more and more interested in tools that connect payments with other functions, such as:

• Reporting
• Inventory
• Customer loyalty programs
• Online ordering
• Cloud-based business software

That, in a nutshell, is why this acquisition has become a talking point across Australia and New Zealand. It signals where the EFTPOS industry may be heading next.

How Has EFTPOS Technology Changed in Australia and New Zealand Over the Years?

EFTPOS was launched in Australia in 1984 and across New Zealand a year later. Since then, it has steadily evolved. Most notably, in recent times, with the rise of tap-and-go payments.

Until just a few years ago, many businesses still relied on fixed countertop terminals with limited functionality. However, modern EFTPOS systems are becoming more portable, connected, and advanced than ever.

The hospitality sector offers a good example, as restaurants and cafés increasingly use mobile terminals that allow staff to process payments directly at the table.

Likewise, retail stores are integrating payment systems into cloud-based point-of-sale platforms. Even market stall operators and small mobile businesses can now access compact wireless devices that connect through mobile networks.

The pandemic also accelerated changes in customer expectations. Especially the rise of contactless payment trends, which have made it easier for customers to make faster, touch-free transactions.

Subsequently, as consumer behaviour changed, more businesses began to pay closer attention to the quality and flexibility of their payment technology.

What Could This Deal Mean for Small Businesses and Retailers?

For small businesses, the biggest question is whether the acquisition could lead to better payment tools and greater flexibility in the years ahead.

Many retailers now expect their EFTPOS machines to support more than just card payments. It is hoped that the combination of Smartpay’s regional footprint and Shift4 payment technology may create opportunities for more integrated solutions across Australia and New Zealand.

This could be especially relevant for hospitality operators, retailers, and any service businesses that manage both in-store and online transactions. All of which can benefit from increased transaction speed, enhanced reporting tools, and greater mobility.

How Are Customer Payment Habits Changing Across Australia and New Zealand?

Customer behaviour has shifted rapidly over the last several decades in both countries, with consumers now expecting fast, simple, and flexible payment experiences.

In fact, around 40% of Aussies leave home without their wallets, instead using their devices to pay for in-store transactions.

At the same time, customers have become comfortable switching between online shopping and physical stores. That has increased demand for payment technology in New Zealand and Australia, capable of supporting multiple sales channels.

Businesses are adapting to this change by investing in systems that facilitate contactless cards, digital wallets, QR code payments, and integrated online transactions.

It seems very likely that the trend will continue, as customers place greater value on convenience and speed during the checkout experience.

What Role Will Cloud-Based EFTPOS Systems Play in the Future?

Cloud technology use is popular now, but it is set to play an even bigger part in the next stage of the payments industry.

Across both countries, traditional standalone terminals are gradually being replaced by connected systems that allow businesses to manage their payments, reporting, and operations from almost anywhere in the world.

For multi-location retailers and hospitality groups, cloud-based platforms offer greater visibility across different sites. That is because business owners can review their sales performance, transaction history, and customer activity without being physically present.

Additionally, cloud-based EFTPOS solutions may also provide faster software updates, stronger integration with third-party tools, and even more flexible business management features.

It seems clear that as payment systems continue to evolve, many businesses will likely prioritise platforms that offer them both convenience and scalability.

Could the Shift4 and Smartpay Deal Change Competition in the Payments Industry?

It is entirely possible that the acquisition could place additional pressure on payment providers throughout Australia and New Zealand.

In recent years, competition in the payments space has intensified as businesses seek technology partners to support both physical and digital commerce.

As a result, providers are now competing on more than terminal pricing alone, with features such as mobility, software integrations, customer support, analytics, AI, and platform flexibility becoming increasingly important.

This means that the Shift4 and Smartpay combination could encourage further innovation across the market as competitors look to strengthen their own offerings.

Ultimately, this could be good news for businesses, as stronger competition could lead to more choices and more advanced payment solutions in the not-too-distant future