Zeller launches Terminal 1x to cut Aussie merchant costs

Zeller has launched Terminal 1x, an all-in-one point-of-sale and payment device for Australian businesses, priced at AUD $199.

The Melbourne fintech says the device combines card payments and point-of-sale functions in a single unit, with no ongoing monthly software or hardware charges. It is aimed at merchants that currently pay separately for payment terminals and POS software.

Zeller is positioning the launch as a challenge to established providers including Square and Tyro. It says the average small business spends more than AUD $2,100 a year on payment terminal hardware and POS software fees, and argues the new device could remove much of that expense.

Chief executive and co-founder Ben Pfisterer said the market had become too complicated for many merchants.

"The Australian payments landscape has become more complex than it needs to be. Businesses are often forced into ecosystems with ongoing fees and limited flexibility. We built Zeller T1x to challenge that - giving merchants a simple, affordable alternative that works out of the box, integrates with the systems they already use, and enables them to run more efficiently," Pfisterer said.

Cost pressure

The launch comes as small and medium-sized businesses face rising costs across wages, fuel, insurance and software subscriptions. Zeller is targeting those broader operating pressures rather than focusing only on transaction charges, where competition in payments has long been centred.

It argues that recurring software fees and separate hardware costs have become a growing burden for smaller merchants, especially sole traders and micro businesses that sell face-to-face, including tradespeople, market sellers, hospitality venues and service operators.

Zeller says the built-in POS system removes the need for third-party software that can cost the average small business more than AUD $1,800 a year. That, it says, would let merchants avoid separate subscriptions, extra hardware purchases and integration work between systems.

Pfisterer said customers had highlighted the cumulative effect of those charges.

"Every dollar matters for small businesses right now. What we're hearing from Zeller's 100,000+ customers nationally is that it's not just transaction fees - it's the stack of ongoing costs that add up," Pfisterer said. "T1x strips all of that back. By combining payments and POS into one device with no ongoing POS software fees, we're helping businesses reduce overheads and keep more of what they earn."

Device details

Terminal 1x includes a 6.7-inch HD touchscreen, a built-in thermal receipt printer, and digital receipt options via SMS, email or QR code. It also supports Wi-Fi, SIM and Ethernet connectivity, allowing it to be used in fixed locations and mobile settings.

Zeller says the device can handle more than 1,000 transactions on a single charge and has been designed for heavier daily use. It is an update to the earlier Zeller Terminal 1, introduced as part of the company's push into merchant payments hardware.

The launch also extends Zeller's broader strategy of selling payments infrastructure alongside banking and financial management tools for businesses. Founded in 2020, the company says it now serves more than 100,000 businesses and operates in Australia and the UK.

Open systems

Interoperability is a central part of the pitch. Zeller says Terminal 1x integrates with more than 600 third-party POS systems as well as self-service kiosk checkout systems, allowing merchants to keep their existing software rather than move to a single provider's platform.

That approach contrasts with parts of the payments market where merchants are encouraged to adopt a closed set of hardware and software products from one supplier. For businesses that have already invested in other operational systems, the ability to connect a new terminal to existing workflows can be a deciding factor.

Zeller has also continued to invest in payments hardware as a way to differentiate itself in a crowded market. It noted that its Terminal 2 device, released in 2024, later won several design and merchant industry awards.

Terminal 1x is now being sold online and through Amazon for AUD $199, as Zeller looks to attract merchants seeking to cut fixed costs without replacing the rest of their technology stack.