Zeller launches UK payments platform amid fee pressure

Zeller has launched its payments platform in the UK, marking the Australian fintech's entry into one of the world's largest financial technology markets.

More than 100 businesses signed up during the pre-launch phase in Britain. Zeller has 18 employees in its London office in Holborn as it begins operating in the market.

Founded in Melbourne in 2020, Zeller now supports more than 100,000 businesses in Australia. Its customers include Domino's Pizza, Baskin Robbins, The Cheesecake Shop, Chatime and Concept Eight, which operates brands including Noodle Box, Acai Brothers, Huxtaburger and South Seoul.

The company says growth in Australia continues to rise, with more than 100 businesses signing up each day and 35% of Australians tapping their card on a Zeller terminal each month. It also estimates it will save Australian small businesses AUD $21.8 million in EFTPOS hardware and transaction fees in the current financial year.

Fee pressure

The UK launch comes as payment costs remain a concern for smaller merchants. Zeller says UK businesses could save up to 35% on card processing fees by switching, amounting to GBP £5.2 billion a year across the wider market.

Britain banned card surcharging in 2018, leaving merchants less able to pass payment costs on to consumers. Zeller says the UK has historically had an average card transaction fee of 1.65%, above levels seen in Australia.

The company is positioning itself against established banks and newer payment providers in a market where small businesses often still rely on older systems and lengthy onboarding processes. According to Zeller, the opportunity in the UK is about four times larger than in Australia.

Co-founder and chief executive Ben Pfisterer said the expansion follows rapid take-up in its home market.

"We built Zeller to offer Australian businesses a smarter, more reliable, and more affordable alternative to legacy banks and expensive global fintechs. We now support over 100,000 Australian businesses and have saved merchants nearly $22M in card payment costs this financial year alone, which is essential as Australian merchants look for more affordable payment providers ahead of the RBA's surcharging ban coming into effect in October," Pfisterer said.

That reference to Australia's payments policy points to another pressure on merchants. The Reserve Bank of Australia is due to introduce a ban on surcharging, a change that could further sharpen business focus on payment acceptance costs.

UK ambition

Pfisterer said Britain's payments landscape still leaves many smaller firms with limited choices despite the country's reputation as a fintech centre.

"The UK is one of the world's most advanced fintech markets and home to millions of small businesses that are vital to the economy. But despite progress, payments are still dominated by legacy providers offering unreliable, outdated, and costly hardware paired with lengthy sign-up processes. UK merchants have been underserved for too long," he said.

He said the UK rollout is part of a broader international push.

"Zeller's expansion to the UK is a natural next step as we continue building a modern payments solution designed for global businesses," Pfisterer said.

According to Zeller, it reached unicorn status faster than several better-known Australian technology companies, including Airwallex, Afterpay and Atlassian. The company was founded by Pfisterer and Dominic Yap, and is backed by investors including Square Peg, Apex Capital Partners, Addition, Spark Capital, Headline and Hostplus.

Zeller describes its offering as an integrated financial product for businesses, combining payments, invoicing, business accounts, cards and expense management. With teams in Australia and the UK, it is now seeking to turn its domestic growth into a broader international business while competing in a crowded British payments market.