Google has successfully enabled payments made via its mobile payment service, Google Wallet, to be routed through the domestic eftpos network, offering a least cost routing choice for contactless payments.

ANZ and Suncorp Bank are the first two issuers to go live with eftpos multi-network debit cards in the Google Wallet.

Payments authority Australian Payments Plus (AP+), which commenced the rollout of least cost routing (LCR) in 2024 for mobile wallets, supported Google in implementing the capability.

LCR enables payments to be processed through the debit payment network that offers the lowest transaction cost – in many cases, the domestic eftpos network.

Previously, multi-network debit cards loaded into Google Wallet defaulted to international card networks, Mastercard or Visa. According to the Reserve Bank of Australia (RBA), upwards of 85 per cent of debit cards in Australia are ‘dual-network’ debit cards, enabling payments to be processed through either one of the three networks.

Due to rules set by the international networks, contactless card payments – which represent more than 95 per cent of in-person card payments in Australia – made with dual-network debit cards would typically default to using the more expensive international debit network.

Data from the RBA shows the cost of accepting debit card transactions is nearly 20 per cent lower for merchants that have LCR turned on compared with those that have the function turned off.

Following the successful onboarding of ANZ and its recently acquired subsidiary Suncorp Bank, AP+ said other debit card issuers will be onboarded over the course of 2025.

“We’re proud to work with the eftpos network, banks including ANZ and Suncorp Bank, and the RBA to bring least cost routing to Google Wallet in Australia,” said Google Australia manager of payments, Naomi Gaskell.

“It will give Australians greater choice and control over their payments and help Australian retailers to reduce payments costs, in line with Google’s broader efforts to support Australian businesses.”

AP+ chief payments and schemes officer Adrian Lovney said the payments authority was “committed to lowering the wholesale cost of payments across our payment schemes”.

“It’s all part of having a strong and competitive payment system that serves the needs of businesses and consumers in Australia.”