Odoo and Tyro Payments: A Catalyst for Dominance in Australia's SaaS-Based POS Market

The strategic integration between Odoo and Tyro Payments, announced in February 2025 and launched in July of the same year, marks a pivotal moment in the evolution of cloud-based enterprise resource planning (ERP) and payment systems. By merging Odoo's ERP dominance with Tyro's robust payment infrastructure, this partnership is poised to accelerate growth in the SaaS-based point-of-sale (POS) market while addressing critical operational and regulatory challenges faced by Australian small and medium-sized enterprises (SMEs). This article explores how the collaboration creates a compelling investment thesis in the cloud ERP sector, driven by streamlined workflows, compliance automation, and the rise of Peppol e-invoicing.

Market Context: SaaS POS Growth and the Shift to Embedded Payments
Australia's SaaS POS market is projected to grow at a 14% CAGR through 2027, fueled by SMEs seeking unified solutions for inventory, accounting, and payment processing. Traditional EFTPOS systems, which often require separate hardware and manual reconciliation, are increasingly outdated. Meanwhile, embedded payments—where payment processing is integrated directly into software—are gaining traction.

Tyro's embedded SDK, now available within Odoo's platform, eliminates the need for standalone terminals, reducing costs and complexity for businesses.

The Partnership's Strategic Value
The Odoo-Tyro integration delivers three core advantages:
1. Streamlined Workflows: SMEs can process sales, refunds, and split payments directly through Odoo's POS interface, while Tyro handles payment authorization and settlement. This eliminates manual data entry and reduces errors.
2. Regulatory Compliance: Australia's GST and BAS requirements are embedded into Odoo's workflows, ensuring real-time tax calculations and reporting. Future updates will also support Peppol e-invoicing, a government-mandated standard for digital transactions.
3. Cost Efficiency: By eliminating EFTPOS rental fees and automating reconciliation, SMEs save an average of 15-20% in operational costs annually, according to Tyro's estimates.

Competitive Differentiation
Odoo's ERP system already holds a 20%+ market share in Australia among SMEs, thanks to its modular design and localization. The Tyro integration strengthens this position by addressing a critical pain point: payment processing. Competitors like Xero and MYOB lack native payment solutions, forcing users to juggle multiple systems. Meanwhile, Tyro's SDK supports 73,000+ Australian merchants, creating a network effect for Odoo users.

Future Potential: AI, Peppol, and Market Expansion
Odoo's AI advancements—such as OCR for invoice automation and predictive inventory analytics—will further deepen the partnership's value. Peppol e-invoicing adoption, mandated for government contracts by 2026, positions Odoo as a leader in compliant B2B transactions. Beyond Australia, this integration could be replicated in other markets where Odoo operates, such as Europe and New Zealand.

While Odoo remains a private company, its partnership-driven growth aligns with the trajectory of publicly traded SaaS peers like Shopify (SHOP) and Square (SQ). Investors should monitor metrics like SME adoption rates in Australia and the expansion of Peppol-enabled features.

Investment Thesis
The Odoo-Tyro partnership reduces operational friction, boosts customer retention, and establishes Odoo as a one-stop solution for end-to-end commerce. For investors, this represents a strategic play on two trends: the shift to SaaS POS systems and the digitization of SME operations. While direct investment in Odoo is not yet possible, exposure can be gained through:
- Equity in Tyro: If listed, Tyro's stock (hypothetical: TYRO.AX) would benefit from Odoo's expanded user base.
- SaaS ETFs: Funds tracking the global SaaS sector (e.g., Global X SaaS ETF) capture indirect exposure to market tailwinds.
- Odoo Partnerships: Firms like Havi (integrator of Odoo with Xero/MYOB) may see revenue growth as adoption accelerates.

Conclusion
The integration of Odoo and Tyro Payments is not merely a feature update—it's a blueprint for future ERP systems. By tackling payment processing, compliance, and efficiency holistically, Odoo is positioning itself as the go-to platform for SMEs in Australia and beyond. With Peppol e-invoicing and AI-driven automation on the horizon, this partnership is a catalyst for sustained growth in the cloud ERP space, making it a compelling investment for those betting on SaaS-driven operational transformation.

For investors, the time to act is now: the SaaS POS market is at an inflection point, and Odoo's leadership in this ecosystem is a risk worth taking.