Online eftpos payments could replace credit cards

Photo / Greg Bowker

Online spending in New Zealand is expected to reach $4.15 billion by the end of this year, and payment solutions business Paymark is looking to make this easier with online EFTPOS payments.

The company has developed a secure system which chief executive Mark Rushworth said will allow anyone with an EFTPOS card to be able to make payments online, removing the need for a credit card in a move he said will be easier and simpler for the consumer.

The payment works by using secure digital tokens, removing any need for customers to reveal financial details. The payment solution is also integrated with mobile banking apps.

Paymark has partnered with ASB, BNZ and TSB in creating the solution and will be running a pilot of the online EFTPOS service in November before officially launching in early 2015.

Russell Jones, ASB executive general manager of technology and innovation said e-commerce was the fastest growing payment category last year, as retailers continue to increase their online presence.

"Online EFTPOS is a natural progression of a payment method first introduced in 1989 and now well embedded in Kiwi day-to-day life," Jones said. "The EFTPOS online initiative we are launching with Paymark is another New Zealand first that will be great for merchants and our customers."

Rushworth said the new payment solution would also benefit retailers, increasing the number of potential customers for retailers and lowering the rate of online checkout abandonment.

According to Paymark, their network processes 75 per cent of all electronic transactions in the retail market, for more than 75,000 merchants.