Why the Tyro Payments (ASX:TYR) share price is on the move today

The Tyro Payments Ltd (ASX: TYR) share price is under pressure today after announcing an EFTPOS terminal outage to the market.

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The Tyro Payments Ltd (ASX: TYR) share price jumped 3.4% higher in early trade but has since lost most of its early gains and is currently sitting 0.93% up at $3.26 per share.

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What's moving the Tyro Payments share price today?

The Aussie payments company provided an update on an outage affecting a number of its EFTPOS terminals.

Tyro said it is experiencing a "connectivity issue" related to a "limited number" of terminals. The issue has been presented since 7pm on Tuesday as Tyro works with its supplier, Worldline, to find a resolution.

Tyro is looking to mitigate the impact on its merchants arising from the outage affecting ~15% of active terminals. Tyro said the issue has caused a ~5% reduction in expected transaction value since Tuesday.

The total impact will only be able to be quantified by the company once the issue is resolved.

The Tyro Payments share price has retraced its gains following this morning's surge and is trending lower this afternoon.

Shares in the Aussie payments group are down 1.8% in the last 12 months. Tyro recently accepted a 2-year court-enforceable undertaking to remedy breaches of the Spam Act 2003.

The Aussie fintech was found to have illegally sent more than 150,000 spam email and text messages in the last two years. The messages in questions failed to include an unsubscribe function as required under the Act.

The Tyro Payments share price plummeted in the March bear market to as low as 97 cents per share. The EFTPOS payment solutions provider currently has a market capitalisation of $1.7 billion at the time of writing.

Foolish takeaway

The Tyro Payments share price rocketed higher in early trade but is backtracking in early afternoon. The EFTPOS terminal outage the company announced is still being investigated, with Tyro to assess the full extent of the damage once the issue is resolved.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of 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 Bruce Jackson.

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