The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose the proposed acquisition of Indue Limited by Cuscal Limited. The ACCC's review determined that the transaction is unlikely to substantially lessen competition in the payment facilitation services market.

The ACCC's analysis focused on the competitive dynamics between Cuscal and Indue, particularly in their service offerings to small banks and fintech companies. Payment facilitation services are essential for these organizations, enabling them to provide payment solutions such as eftpos and debit card processing.

According to ACCC Commissioner Dr. Philip Williams, the consolidation among smaller banks has reduced the competitive landscape for Cuscal and Indue. He noted that achieving greater scale in payment facilitation services is crucial for making necessary investments in technology and meeting customer and regulatory demands.

While Cuscal and Indue are significant players in the market, the ACCC found that customers have access to a variety of other suppliers for their payment facilitation needs. Feedback from market participants, including 30 small and mutual banks, indicated that many customers supported the acquisition, believing it would lead to efficiencies and continued investment in innovative products.

The ACCC also considered broader industry trends, such as the digitization of payments, which may facilitate easier switching between providers and lower barriers to entry for new competitors. The legal framework guiding the ACCC's decision is outlined in section 50 of the Competition and Consumer Act, which prohibits acquisitions that could substantially lessen competition.