ACCC Clears Cuscal’s Acquisition of Indue: What It Means for Australia’s Payment Sector

Australia’s payment landscape continues to evolve, with the Australian Competition and Consumer Commission (ACCC) confirming it will not oppose Cuscal Limited’s (ASX:CCL) proposed acquisition of Indue Limited.

ACCC approves Cuscal’s acquisition of Indue, reflecting Australia’s shift toward a more scalable and innovative payment ecosystem.

According to the ACCC’s official media release (24 October 2025), the regulator concluded that the deal is unlikely to substantially lessen competition in the supply of payment facilitation services across Australia.

 

A Closer Look at the ACCC’s Review

The ACCC examined how closely Cuscal and Indue compete in providing payment facilitation services — particularly to small and mutual banks and fintech firms.

These services are critical to Australia’s financial system, allowing organisations to process debit and eftpos transactions, connect to payment networks like Visa, Mastercard, and BPAY, and offer card management, data security, and fraud prevention solutions.

While Cuscal and Indue are among the larger providers in this space, the ACCC found that most customers can still choose from multiple payment facilitation suppliers, ensuring that competitive pressure remains.

Why the ACCC Gave the Green Light

ACCC Commissioner Dr Philip Williams noted that consolidation among smaller banks has already reduced the customer pool for payment facilitators. This, combined with the high costs of technology and compliance investment, makes scale increasingly important for service providers.

“Payment facilitation services require significant investment. Achieving greater scale can assist suppliers in making the necessary investments to keep up with advancements in technology, and customer and regulatory requirements,” Dr Williams said.

The regulator also reported that many affected customers — including small and mutual banks — supported the transaction, seeing it as a path to better efficiencies, innovation, and continued investment in digital infrastructure.

Industry Trends and Future Competition

The ACCC’s review highlighted that digitisation and innovation in payment systems are reshaping the competitive landscape. As switching between providers becomes easier, barriers to entry and customer lock-in are expected to decrease — further supporting ongoing competition in the market.

In summary, the ACCC’s decision reflects a balancing act between competition and efficiency, acknowledging that scale can sometimes help sustain innovation without undermining fair market access.

About This Update

This article is based on the official ACCC media release titled “Cuscal’s proposed acquisition of Indue not opposed,” published on 24 October 2025. You can read the full release on the ACCC website here.

Disclaimer

Bane Legal Services is not a law firm and does not provide legal advice. We act as your trusted legal matchmaker, connecting Australian businesses with the right commercial and competition lawyers for their unique needs — backed by over 30 years of business experience in the franchising, consumer, and commercial sectors.