Paymark and banks team up for New Zealand first.
Online shoppers will be able to pay using eftpos when a new service is offered next year.
Paymark, in collaboration with ASB, BNZ and TSB, is developing a new way for people to pay for online goods and services instantly using their existing bank accounts.
Paymark’s chief executive Mark Rushworth said the new payment option would make online shopping possible for anyone with a New Zealand bank account.
Online retailers would also benefit from the new payment option as it would make shopping online accessible to more potential customers.
Mr Rushworth said it would also lower checkout abandonment, where shoppers leave without completing the transaction.
Paymark’s PR and communications specialist Serena Benson said there were many reasons people would be more likely to pay with eftpos rather than a credit card, including that a lot of people do not have a credit card or debit card.
“Credit cards often incur a processing fee. For example, when purchasing a flight online, some airlines include a credit card surcharge, which can be an additional expense especially if the trip being booked is high value,” Ms Benson said.
“Some online merchants don’t actually accept credit cards due to the acquiring or processing fee – if people pay via eftpos, merchants do not incur any fees.”
Using a credit card online also limits the customer to paying from one account while eftpos allows shoppers to choose which bank account they want to pay from, such as cheque or savings.
A pilot is planned for late November but here is how the process is expected to work:
Instead of inputting any card details, the consumer will enter their mobile number.
The mobile application for the consumer’s bank will open up and the consumer will need to go through the normal bank security login process.
A pre-loaded payment screen will then appear within the application and show details of the online cart (such as the merchant, products, total cost etc).
The consumer can check all details are correct, select the preferred account for payment (for example cheque, savings) and press the approve button.
A notification will then appear on the online site the consumer is purchasing from to confirm the transaction has been approved.
The official launch is planned for early next year. You can use our Facebook page to let us know if you’re likely to use this service.