This ASX payments stock jumped after a key RBA decision

Shares of Tyro Payments Ltd (ASX: TYR) are pushing higher on Tuesday.

This comes after the payments company welcomed the Reserve Bank of Australia (RBA)’s final reforms on card surcharging and merchant payment costs.

In midday trade, the Tyro share price is up 4% to 78 cents, after climbing as high as 80 cents before some profit-taking trimmed the gain.

The latest move follows an announcement that could strengthen the company’s longer-term competitive position.

Why investors are cheering today

According to the release, Tyro welcomed the RBA’s final reforms on card surcharging, interchange fees, and fee transparency across the payments sector.

The changes include a ban on surcharging for EFTPOS, Visa, and Mastercard transactions from 1 October 2026, alongside lower interchange caps and new disclosure requirements for larger payment providers from April 2027.

The RBA estimates the changes could save consumers and businesses a combined $2.5 billion each year.

Tyro said the reforms are in line with its expectations and will not affect its near-term financial guidance.

That is likely one of the main reasons the share price is moving higher, with investors viewing the regulatory changes as encouraging stronger competition across the merchant acquiring market.

Chief Executive Nigel Lee said the reforms represent “a win for consumers through lower payments costs, and a win for Australian small businesses through simpler and more transparent pricing”.

He added that the changes also mark a structural shift away from surcharge-led and opaque bundled pricing, which could encourage merchants to reassess their payment providers.

Tyro already operates with clearer transaction pricing and vertical-specific payment solutions.

The company has 76,000 merchants on its platform and may be well placed if smaller businesses begin reviewing incumbent providers under the new framework.

Clear rollout dates support Tyro’s outlook

Another supportive part of the update was the clear implementation timetable.

The RBA has confirmed that the surcharge ban and domestic interchange fee reductions will both begin on 1 October 2026, while the cap on foreign-issued cards and extra disclosure requirements for large acquirers will start from 1 April 2027.

That longer runway gives payment providers time to adapt systems, merchant communication, and pricing structures without disrupting current earnings expectations.

Lee said Tyro already operates cost-plus and card-based pricing models that align with the transparency objectives, adding that its systems and operational capability are already set up to support the reforms.

Despite today’s share price rise, the stock is still down by more than 20% in 2026.

The post This ASX payments stock jumped after a key RBA decision appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.