Tyro share price leaps amid Apple Pay news

A new Apple pay product may be boosting Tyro's stock on Wednesday.

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Key points

  • Tyro shares are edging into the green today
  • Apple has launched Tap to Pay for iPhone in Australia today
  • Tyro and Westpac are the first payment platforms in Australia to offer the technology to customers 

The Tyro Payments Ltd (ASX: TYR) share price is in the green today.

Tyro shares are up 1%, currently fetching $1.515 each. For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) share price is 0.83% lower in afternoon trading.

Let's take a look at what's been happening at Tyro and the news out of Apple Pay today.

What's going on?

Tyro is a fintech company developing payment solutions for businesses — online or in person.

ASX fintech companies are slightly up or down today, but not making any groundbreaking moves. For example, EML Payments Ltd (ASX: EML) shares are down 0.79%, while Zip Co Ltd (ASX: ZIP) shares are up 0.91%. Block Inc (ASX: SQ2) shares are sliding 1.08% at the time of writing.

In news today, Apple has introduced Tap to Pay for iPhone in Australia.

Local businesses — from market stall holders to retail stores and hospitality companies — will now be able to take in-person contactless payments via iPhones.

Apple vice president Jennifer Bailey said:

The convenience of Tap to Pay on iPhone empowers Australian businesses to offer easy, secure, and private contactless payment experiences to their customers, and help them run and grow their business.

Tyro Payments and Westpac Banking Corporation (ASX: WBC) are the first payment platforms delivering Tap to Phone on iPhone to customers.

Commenting on the news, Tyro CEO Jon Davey said:

Tap to Pay on iPhone is a fantastic, simple, and secure way for new or existing Tyro customers to accept payments using only their iPhone, anytime, anywhere — without the need for additional hardware.

We are excited to introduce this new offering to our customers, providing greater flexibility when staff are working onsite or are on the move. It couldn't be simpler. Just download the Tyro BYO App to start accepting customer payments on your iPhone in minutes.

In December last year, Westpac pulled out of a takeover bid for Tyro, saying at the time: "Westpac has now undertaken due diligence on Tyro and has decided that submitting an offer is not in the best interests of Westpac shareholders at this time".

However, Tyro said at the time it was still open to takeover talks provided it "represents compelling value".

Tyro upgraded its full-year profit and earnings before interest, tax, depreciation and amortisation (EBITDA) guidance earlier this week. The company is now forecasting gross profit of between $192 million and $194 million for financial year 2023. The company's EBITDA is tipped to be between $41 million and $43 million.

Share price snapshot

The Tyro share price has soared nearly 44% in the last 12 months. In the last week, it has dropped around 3.5%.

Tyro has a market capitalisation of about $783 million based on the latest share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, EML Payments, Tyro Payments, and Zip Co. The Motley Fool Australia has recommended Apple, Tyro Payments, and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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