Here's why the Tyro (ASX:TYR) share price is in focus today

The Tyro Payments (ASX: TYR) share price will be on watch today following the latest terminal connectivity issue update from the company.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tyro Payments Ltd (ASX: TYR) share price is one worth watching in early trade today. All eyes will be on the Aussie payment solutions provider after the company released an update regarding its terminal connectivity saga.

Why is the Tyro share price in focus?

Wednesday evening saw Tyro provide a final status update on its terminal connectivity issue. The issue first came to light on 7 January 2021 and has been the subject of much attention, pushing the Tyro share price down 24.7%.

Tyro reported that the number of terminals connected to its network has now returned to pre-incident levels. This was confirmed by real-time monitoring data of terminals connected to Tyro's switch engine over the last month.

However, it wasn't all good news for shareholders and the Tyro share price is one worth watching as a result. Tyro said there are a "limited number" of active merchants still impacted by the connectivity issue.

486 merchants currently do not have an operational terminal. Tyro is continuing to work with these operators to get their payments systems back online.

1,490 merchants have at least one fully operational terminal but also at least one non-functioning unit. There are also 643 merchants with terminal types over 6 years of age which are no longer manufactured. Those units are now obsolete and merchants are being encouraged to replace them.

The Tyro share price has been under pressure due to the connectivity issue for nearly all of January. This includes fending off activist short-sellers targeting the Aussie payments group.

To that end, Tyro also provided a transaction value status update yesterday. Transaction value compared to FY20 numbers is up 8% date on date, and same day on day compared to 26 January.

January year to date figures are up 9% to $13.779 billion compared to $12.606 billion in FY20. That also makes the Tyro share price one to watch early on Thursday.

Foolish takeaway

Yesterday's update is just the latest chapter in the ongoing connectivity issue impacting the Tyro share price. Shares in the payments group are worth watching in early trade following the company's final status update.

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.

More on Share Market News

Woman at home saving money in a piggybank and smiling.
Opinions

Why I just invested another $1,000 in my favourite ASX 200 stock

I’m planning to hold this stock for a very long time.

Read more »

A man looking at his laptop and thinking.
Share Market News

Why is the ASX 200 pumping the brakes before the weekend?

Australian investors don't have the appetite today, here's why.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

Buy one, sell the other: Goldman's verdict on these 2 ASX 200 mining shares

The broker sees significant valuation differences between these 2 major ASX 200 mining shares.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why BHP, Lynas, Metals X, and Super Retail shares are dropping today

These shares are ending the week in the red.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Latin Resources, Newmont, Nick Scali, and ResMed shares are surging today

These ASX shares are ending the week strongly. But why?

Read more »

supermarket asx shares represented by shopping trolley in supermarket aisle
Mergers & Acquisitions

Metcash shares down despite corporate watchdog approval

Metcash is about to diversify and become a bigger business.

Read more »

happy investor, celebrating investor, good news, share price rise, up, increase
Capital Raising

Nick Scali share price jumps 14% to record high after raising $46m

Investors have responded very positively to the company's UK expansion plan.

Read more »