KPay Group’s Australian subsidiary has obtained an Australian Financial Services License (AFSL) from the Australian Securities and Investments Commission (ASIC), a year after entering the market.
The license allows KPay Merchant Service (Australia) Pty Ltd to issue non-cash payment products and provide general advice on these products to retail and wholesale clients.
Since launching in Australia in October 2025, KPay has onboarded more than 4,000 SMEs across the food and beverage, retail, hospitality and professional services sectors.
KPay secures regulatory approval in Australia
The AFSL authorises KPay Australia to provide specified financial services involving non-cash payment products, which allow customers to make payments without using physical cash.
According to KPay, obtaining the license involves an assessment of a company’s management, financial resources, risk management and compliance arrangements.
Davis Chan, Co-Founder and Chief Executive Officer of KPay Group, said the approval would support the company’s next phase of growth in Australia.
“The grant of our AFSL is an important regulatory milestone that supports the next stage of our Australian business,”
said Chan.
“As we step into Year Two, we are better equipped than ever to support Australian businesses with the tools, financing, and regulated infrastructure they need to grow.”
In Singapore, the Monetary Authority of Singapore (MAS) has granted KPay a Major Payment Institution license covering merchant acquisition and money transfer services.
KPay reports faster settlements and growing payment volumes
KPay said its platform brings together services that Australian cafés and independent retailers typically obtain from three or four separate providers, including point-of-sale (POS) systems, electronic funds transfer at point of sale (EFTPOS), bank reconciliation and customer support.
According to the company, merchants receive their settled funds approximately 15% faster than through legacy payment systems. Automated, real-time reconciliation also reduces the time businesses spend managing their transactions each week.
KPay said merchants can reach live customer support in under five minutes, compared with a market average of ten minutes.
Merchants active on the platform for more than three months also recorded an average 73% increase in processed payment volume between their first and thirteenth weeks.
The company attributed this growth to businesses gradually shifting transactions from existing payment providers to KPay.
New POS systems and SME financing
Alongside the licensing announcement, KPay is introducing updated POS hardware and software solutions tailored to Australia’s food and beverage sector.
The systems connect in-store and online payment channels while supporting multiple payment methods and currencies.
Businesses can also manage sales, inventory and customer information through a single platform, with real-time reconciliation across different sales channels.
KPay also highlighted KFund, its SME financing solution, as part of its expanded merchant offerings. However, the announcement did not specify the product’s financing terms, eligibility requirements or Australian availability date.
Expansion plans across Australia
Entering its second year in Australia, KPay plans to expand its merchant base in Sydney and Melbourne while extending its operations to additional cities.
The company also intends to develop more services in response to merchant demand, including financing, business accounts, online payments and Scan-to-Order capabilities.
KPay said it would continue investing in local employees, partnerships and compliance infrastructure to support its Australian expansion.
Featured image credit: Edited by Fintech News Australia, based on image by Who is Danny via Magnific
