The Australian Competition and Consumer Commission (ACCC) has granted clearance to Cuscal’s proposed acquisition of payment facilitation supplier Indue, stating that the merger is not expected to significantly reduce competition in the sector.
This decision brings the Australian payments service provider closer to acquiring 100% of the shares in Indue, with the only remaining hurdle being approval from the Australian Prudential Regulation Authority (APRA).
The transaction is anticipated to happen prior to the year’s end.
Cuscal has been advised by Gilbert + Tobin on the ACCC clearance process.
In its assessment, the ACCC examined the competitive dynamics between Cuscal and Indue in the market for payment facilitation services, which are crucial for smaller banking institutions and fintech companies.
These services enable such organisations to provide various payment options to their customers.
The inquiry by the ACCC concluded that both Cuscal and Indue provide a comprehensive suite of payment facilitation offerings than many other competitors. Nonetheless, it was determined that the majority of clients have the flexibility to meet their payment service needs from a range of providers.
During its review, the ACCC sought feedback from 30 small as well as mutual banks. Another factor that influenced the decision was the trend towards the digitisation of payments, which could potentially decrease the costs of transitioning payment facilitation providers and minimise entry barriers for new competitors.
ACCC commissioner Dr Philip Williams said: “Consolidation among smaller banks has reduced the number of customers Cuscal and Indue compete for.”
“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.”
In August 2025, Cuscal managing director Craig Kennedy announced the company’s intention to acquire Indue, contingent on regulatory approvals.
At that time, Cuscal noted that the acquisition is expected to bring various benefits, including product and service offerings and operational efficiencies.
Additionally, the merger is set to enhance resilience in areas such as cybersecurity, capital, capabilities, and fraud monitoring, equipping the combined entity to meet increasing regulatory demands.
The acquisition will also increase investment capacity, which is anticipated to foster innovation and resource allocation for continued service delivery into the future.
