Zeller launches small business debit cards, replacing the traditional bank sign-up process with Officeworks

Entrepreneurs are set to gain near-instant access to transaction accounts and physical debit cards without ever entering a bank branch, under an ambitious plan Zeller hopes will expand its addressable market to every business in Australia.

Zeller, founded in 2021 by former Square executives Ben Pfisterer and Dominic Yap, already counts 30,000 business customers for its physical payment terminals and suite of business banking accounts.

Now, the fintech unicorn is moving beyond countertop payments with its standalone transaction account, a free-to-use solution the company claims could meet the needs of all 2.6 million businesses nationwide.

Under the grab-and-go system, set to launch at the end of January, business leaders and sole traders can instantly create transaction accounts in the new Zeller app to start firing off payments.

The accounts will have no monthly fees or transaction fees.

Once established, users can make payments through ‘virtual’ debit cards, and can apply for physical debit cards, which Zeller will provide by mail.

But for businesses who can’t wait to spend in person, Zeller has partnered with Officeworks to offer its physical debit cards in its 167 outlets across the country.

Officeworks will charge $15 for the cards, with Zeller reimbursing the cost directly into a user’s account.

Speaking to SmartCompany, Pfisterer said it was vital for Zeller to challenge the big banks by expanding the range of financial services it offers to small business.

“It was very clear to us that we needed to broaden that offering so that we could have this standalone business transaction account card solution, that people could start entering the Zeller ecosystem without physically accepting card payments,” he said.

Issuing cards through Officeworks will benefit entrepreneurs in regional Australia, Pfisterer added, claiming they cannot always rely on traditional bank branches to offer near-instant spending solutions.

“We always have had a really healthy part of our customer base in regional Australia [and] I don’t see that getting any smaller over time,” he said.

“We also know that regional Australia is traditionally a really innovative part of our broader economy.

“Often they’re small business owners themselves or sole traders. So being able to serve them when they often are suffering a bit of isolation in terms of getting their services is really exciting for us.”

Officeworks, which already carries Zeller’s payment terminals, views the partnership as another way to meet the requirements of local business operators.

“The new debit card is another way we can provide essential products and services to small businesses which make an essential contribution to the local communities where we live and work,” said Jim Berndelis, Officeworks general manager merchandise.

Zeller eyes new big four offensive

Launching the account and debit card services, and the ability to view financial reports through the app, brings Zeller closer to the product portfolios offered by the big four banks.

The decision not to charge businesses for establishing a new transaction account or debit card suggests that, for now, the billion-dollar-valued company is more focused on poaching market share from the incumbents than seeking instant profits.

Pfisterer said more advanced financial services features offered by Zeller will incur a cost (Zeller terminals already cost $299, with card payments attracting a 1.4% fee), but it was worth avoiding upfront fees if it meant integrating more users into its ecosystem.

“Our premise is always that we don’t want to push costs of the business unless they’re getting value from that,” he said.

“So in that use case, if you choose not to process invoices with us, you choose not to accept card payments and the like, then there’s no revenue for us.

“Our belief is that our products are very strong. Having that integration, they’ll be able to see the products and use them and try them over time.

“It’s certainly not about a money-grabbing exercise where we’re looking to maximise revenue from every customer.”

The company appears to have cash to expend while it targets those users. Reflecting on Zeller’s extraordinary capital-raising efforts since launch, Pfisterer said the business is becoming more efficient with its expenditure as it grows.

The possibility of Zeller building out its financial services to one day include business lending is still live, although Pfisterer said it is dependent on whether Zeller can feasibly beat the banks at their own game.

“We have to make sure we’re changing the game and actually offering a viably better solution than what’s on the market,” he said.

“And we think there is potential.”