New eftpos anti-fraud tools aim to make Aussie merchants and consumers more secure online

eftpos is scheduled to launch two new eCommerce anti-fraud tools later this year, aimed at helping Australians make more secure payments online.

eftpos CEO Stephen Benton said with more Australians moving their everyday spending into the digital economy, eftpos was rolling out the eCommerce capabilities to help drive competition, provide choice and enhance online payments security.

Mr Benton said an important part of this rollout was the introduction of two new anti-fraud capabilities by the beginning of November 2021:

  • Network Fraud Scoring – to help financial institutions assess the risk associated with individual transactions.
  • eftpos Secure (EMV 3-D Secure) – two-factor authentication for consumers, which helps reduce risk for both consumers and merchants.

These new anti-fraud tools have been in development for several years and follow the earlier introduction of enhanced security and fraud services from eftpos, including the eftpos Tokenisation service in 2016 and the upgraded Disputes and Chargebacks platform in 2017.

“The introduction of these new anti-fraud services means we can extend eftpos payment options for consumers and merchants into higher risk categories of the online payments environments with confidence, and keep driving competition in this space,” Mr Benton said.

“This is a vital step in opening-up online payment options and not repeating the mistakes of the past when eCommerce card payments were first rolled out by others, particularly at a time when more Australians are relying on the digital economy for their everyday spending.”

The vast majority (84%*) of reported card fraud in Australia occurs in the online environment. eftpos’ current eCommerce card-on-file solution has experienced zero fraud because of the low-risk approach taken to minimise risk across the ecosystem.

Mr Benton said eftpos had taken a cautious approach to its entry into eCommerce, with the new anti-fraud tools and capabilities being in development for the past few years.

“The introduction of these enhanced anti-fraud tools completes the market-wide enablement of omni-channel processing support for purchase transactions. This allows eftpos to support transformational digital commerce experiences for all Australians,” Mr Benton said.

eftpos launched its first eCommerce service in August last year for Australian businesses that accept recurring card-on-file transactions from their customers. eftpos has also upgraded its network to support Deposit & Withdrawal messages, enabling secure and low-cost real-time transfer of funds for person-to-person (P2P) payments, Business-to-Consumer (B2C) and Government-to-Consumer (G2C) disbursements.

*AusPayNet Fraud Report 2020


eftpos, BPAY Group and NPPA propose to amalgamate

  • eftpos, BPAY Group and NPPA to be preserved as distinct operations under a single Board with a shared roadmap for innovation and investment
  • A unified group will aim to improve choice, competition, innovation, efficiency and affordability of Australia’s payments system
  • The proposal is subject to ACCC approval, including a period of public consultation prior to determination

Australia’s three domestic payment organisations, eftpos, BPAY Group and New Payments Platform Australia (NPPA) intend to amalgamate, creating a stronger, unified entity (“NewCo”) that will aim to reduce costs, increase innovation and efficiency, and be better able to compete with the growing scale of overseas multinational payment platforms.

In Australia, international card schemes and multinational technology providers are dominating the payments sector. Change is needed to ensure that the Australian payments system supports the best interests of consumers and businesses, through increased choice and competition.

The proposal to amalgamate will seek to realise tangible benefits for consumers and businesses, including a continued rollout of eftpos’ existing online capability, which seeks to give Australian retailers and consumers a low-cost option when purchasing online.

A single Board will utilise the strengths of each organisation: including BPAY Group’s innovation capability, eftpos’ low cost, real time retail payments and digital innovation capability and NPPA’s real-time infrastructure management capability.

The proposal was made by an Industry Committee comprising 13 mutual shareholders and eftpos members across the three entities. The Committee was established following the RBA’s Review of Retail Payments Regulation Issues Paper, which noted consolidation of some domestic payment groups should be considered. After a four-month period of deliberation, the Committee unanimously supported the amalgamation proposal.

Industry Committee Chairman, Robert Milliner, said a new, strong entity is needed to shape payments in Australia and provide sustainable competition to global payment companies for the benefit of local consumers and businesses:

“An efficient, innovative and competitive Australian payments system is vital for consumers and businesses, both large and small. The model proposed will enable us to adapt faster to the changing trends of the digital economy, while preserving and strengthening the components of our payments system that so many Australians value and rely on.”

“eftpos, BPAY Group and the NPPA provide Australians with reliable, safe and affordable payments options every single day. Working together towards common goals, they can unlock incredible value, invest more in innovation and realise cost-savings that will ultimately benefit the Australian public.”

eftpos, BPAY Group and NPPA will be preserved as distinct operations in a new combined entity with a single Board which will determine a NewCo management structure. Customers will continue to have access to the existing payments methods they know and trust; including BPAY, Osko, eftpos, Beem It and PayID. Each entity will continue to have its own operating governance and management schemes.

Benefits of the proposal

Amalgamation will aim to address current inefficiencies in the system, by creating a NewCo that provides multi-service infrastructure, broad capability, low cost of acceptance and a unified roadmap that is responsive to changing consumer expectations and technological advancements.

The combined entity will aim to deliver substantial benefits while also protecting the value and brands of eftpos, BPAY Group and NPPA. NewCo will aim to:

  • Apply downward pressure on payment costs: A unified domestic payments entity will foster low cost real-time account to account and eftpos debit card form factor payments and seek to bring average merchant fees down further.
  • Encourage and enable more payments innovation: Working towards common goals, joint investments can be made in new and existing payments infrastructure and services.
  • Enhance competition: Through increased scope and scale, NewCo’s goal will be to provide sustainable competition to global payments companies in a rapidly evolving payments landscape.
  • Improve efficiency and speed to market: Via reduced duplication, the unified roadmap aims to improve efficiency and speed to market of new innovations to meet unmet consumer needs.

Unanimous shareholder support

The Boards of eftpos, BPAY Group and NPPA have executed an agreement to implement NewCo subject to obtaining ACCC authorisation. eftpos Managing Director Stephen Benton said:

“For over 35 years, eftpos has been giving Australian customers and businesses access to reliable, affordable and safe payments. We pride ourselves on offering customers low cost acceptance options and intend to continue to deliver this. This proposal should allow us to continue to expand our online digital capabilities and innovation in areas such as digital identity, QR codes and mobile wallets including extending the role of Beem It to be an everyday lifestyle app.”

BPAY Group CEO John Banfield said:

“BPAY Group has been at the forefront of collaborative innovation within the Financial Services sector and beyond for decades. Our more recent recognition such as one of Australia’s Best Workplaces, AFRs Most Innovative Companies, Best Product Innovation is a clear strategic advantage for the Board of NewCo as it transforms into an entity that can literally take on the world, should the ACCC agree that this is in the public’s interest or otherwise approve it.”

NPP Australia CEO Adrian Lovney said:

“The COVID-19 pandemic has accelerated the pace in which the payments system is evolving. The increasing trends away from cash to online and in-app purchasing highlight how important it is for Australia’s domestic payments players to work together and invest in the current and future needs of Australians and how they want to pay.”

The new structure A single Board of 13 Directors will govern the operation of NewCo – comprising four independent Directors including the Chair and nine representatives from the major banks, smaller banks and non-ADIs (such as retailers and other payment processors). Each Director will have one vote, the major banks will have 4 out of 13 votes.

While arrangements could evolve over time with the approval of the shareholders, a key feature of the proposal is that the individual interests of the three entities will be protected. Fundamental decisions about the operation, funding, or future of any of the three schemes would be subject to determination by those shareholders that use that particular system. Retailers and other users of the eftpos system, for instance, will retain specific veto rights over any proposals that would directly impact eftpos.

The proposal also requires that each organisation’s existing payments-related work program remains unchanged until at least June 2022. This includes:

  • Extending eftpos acceptance online and in-app, and broadening of Beem It use cases;
  • Development of QR codes in accordance with an agreed standard and in coordination with relevant entities;
  • BPAY Group roadmap including making BPAY fully available through Application Programming Interfaces (APIs) and the further development of its Osko service; and
  • NPP Australia’s Mandated Payments Service which will enable authorised third-party initiated debits from more than 72m Australian bank accounts via a single connection.

A formal authorisation application will be filed with the ACCC in March 2021. The application will provide full details of the proposal and rationale. It will be made publicly available and subject to broad public consultation before the ACCC makes a determination within 90 days.


eftpos launches advisory committee to give FinTech a voice

eftpos has launched a FinTech advisory committee in collaboration with FinTech Australia, as a way of giving FinTechs a direct say in how they can access and leverage the eftpos payments network for the betterment of Australia’s digital economy.

Seven leading FinTech companies have joined the committee which will involve a series of workshops to be held every month starting in February, focusing on the eftpos digital roadmap and API programs.

As a result, representatives from the following businesses will now join eftpos to explore ways to streamline access to its network, with recommendations to be submitted to the company by mid-year:

  • Assembly Payments
  • Azupay
  • Bleuco
  • Meeco
  • Monoova
  • Paypa Plane
  • Verrency

eftpos CEO Stephen Benton said the idea for the committee arose from ongoing discussions with the team at FinTech Australia, at a time when the company was rapidly expanding in the digital space.

“The aim of the committee is to advise eftpos on ways we can build on our efforts to make it easier for FinTechs to access the eftpos network and our products and services, in order to build their own businesses and payment experiences that can work across a broad range of connected devices in the digital economy,” Mr Benton said.

“We are delighted with the response we got, and would like to thank every new committee member for agreeing to collaborate with us on this important initiative.

“FinTechs are a dynamic and growing sector of our economy, and of crucial importance in the payments space. There are significant opportunities for FinTechs on the eftpos network, which includes access to 51 million Australian eftpos-enabled proprietary, multi-network debit and multi-network credit cards, as well as hundreds and thousands of merchants.,” Mr Benton added.

FinTechs will also be able to leverage eftpos’ digital product and technology strategy, which is being rolled out over the next two years. Much of the work is well under way, focusing around the five key elements of: mobile wallets; eCommerce; Digital ID; APIs and FinTech access; and national QR code payments rollout.

Chair of FinTech Australia and CEO/Co-Founder of Paypa Plane Simone Joyce said the eftpos FinTech advisory committee brings to together some of the most innovative thinkers involved in FinTech in Australia.

“I am looking forward to working with the committee on solutions that leverage the critical infrastructure of the eftpos network to drive positive outcomes for merchants and consumers," Ms Joyce said.


eftpos new brand logo

eftpos, Australia’s national payments network enabling real time debit payments across the country, today unveiled a new-look logo and brand refresh to better reflect the brands digital transformation.

The new logo and fresh brand colours follow the announcement of the eftpos digital product and technology strategy rollout over the next two years, which aims to make it easier for Australians to manage their own money and live a better life in the digital world.

eftpos CEO, Stephen Benton said eftpos wanted to create a bold and distinctive look and feel across every touch point – in store, on mobile and across all digital platforms – that appealed to all Australians including Millennials who are embracing the digital economy.

Mr Benton said eftpos is synonymous with low cost debit card payments across Australia, so it was vital the company developed a new brand identity that was still unmistakably recognised as eftpos, no matter where people shopped or what device they used.

“We want Australians to know that our company is evolving alongside them, and our goal was to convey simplicity and modernity while preserving our distinctly Australian heritage,” Mr Benton said.

“The trust, convenience and security they have come to know when using eftpos remains, and at the same time we are innovating and advancing for the future.”

“This brand refresh is a key component of our much broader digital payments strategy, focussed on creating greater value, ease and security for consumers and businesses by enabling compelling innovations for members, FinTechs and retailers that enhance the digital commerce experience.”

Mr Benton said one of the changes was to transform the eftpos ‘e’ into a dynamic, energetic visual cue to emphasise a fresh, distinctive and meaningful representation of the way Australians live their busy lives.

The refresh was spearheaded by multi-award winning branding and design agency Hulsbosch, renowned for developing visual identities for many of Australia’s iconic brands.

Jaid Hulsbosch, Director at Hulsbosch said “This iconic Australian brand is back with a defined brand story and a stand-out, relevant symbol. A vibrant upgrade in colour and an evolved, stylised ‘digital e’ now perfectly represents the brand and its exciting future.”

Mr Benton said the new brand rollout would be a staged roll out due to the brand’s extensive presence, with over 50 million cards to be updated along with hundreds of thousands of eftpos acceptance marks displayed by merchants across Australia.

“eftpos is one of Australia’s most iconic brands, and we were careful and thoughtful about how we needed to evolve it for the future,” Mr Benton explained.

“Extensive market research and consumer feedback from pre-launch testing has been extremely positive, confirming the new brand retains all the elements they uniquely associate with eftpos as a humble Australian innovator doing good for Australia,” Mr Benton said.

“Extensive market research and consumer feedback from pre-launch testing has been extremely positive, confirming the new brand retains all the elements they uniquely associate with eftpos as a humble Australian innovator doing good for Australia,” Mr Benton said.

eftpos logo

eftpos low cost, real time payment transfers

eftpos today announced the launch of a new digital payments capability which aims to boost productivity for Australian businesses by enabling funds to be both deposited or withdrawn from an account in real time.

The new Deposit and Withdrawal messaging capability is live and available with payments app Beem It the first to launch using the message set, which could also be used for a range of productivity-boosting peer-to-peer or business-to-consumer use cases such as insurance payouts, government disbursements, rebates or instant payroll.

eftpos CEO Stephen Benton said the new capability could significantly enhance productivity for many businesses by replacing manual processes with real time transfer of funds between parties, while also providing enhanced transparency and controls.

He said the new Deposit and Withdrawal message set was an excellent example of innovating on top of the eftpos card infrastructure and Beem It was the logical first choice for launch, by facilitating real-time transfer of funds for its peer-to-peer (P2P) transactions.

“Many Australian businesses have the potential to benefit from these alternative low cost and real time payments which enable the secure deposit or deduction of funds from a cardholder’s account,” Mr Benton said.

“This capability is good for Australia because it aims to boost productivity by automating the manual and cost inefficient transfer of funds, using eftpos’ existing and trusted Australian card network with access to hundreds of thousands of Australian merchants and millions of consumers.

“Deposit and Withdrawal allows Beem It to use eftpos on the end-to-end P2P transaction between Australian multi-network debit cardholders – initiating the payment from the payer’s bank account, and depositing the funds to the payee’s bank account in seconds.”

eftpos purchased Beem It November last year, having acquired the Australian payments app that enables consumers to send and receive money using their phone in seconds, so the company could further advance the Beem It business and expand in the use of digital wallets as a whole in Australia.

Mr Benton said as Australians increasingly digitalise their transactions, we have a great opportunity to harness a more sophisticated funds transfer process, enabling local banks and businesses to offer a broader range of payments capabilities and provide a better digital alternative to the previously used ‘reverse’ eftpos.

“Deposit and Withdrawal capability opens up lots of new use cases and business opportunities such as peer to peer transfers, third party payment initiated withdrawals, insurance payouts, payroll disbursement, rebates including medical and other government rebates, loyalty cashback, wallet funding, gift card loading and newsagency lottery payouts, just to name a few,” Mr Benton said.


eftpos begins to switch on digital payments to offer more choice and potential savings for Australian small businesses during COVID-19 and recovery

eftpos is best known for helping Australian businesses and consumers with low cost and secure payment options instore and is now also available to Australian businesses that accept online card-on-file transactions from their customers.

eftpos CEO, Stephen Benton said dozens of Australian businesses, including Aussie Broadband and Cluey Learning, were already embracing eftpos card-on-file payments, with tens of thousands of transactions being processed through the service each month.

Mr Benton said almost 40 Australian banks including Suncorp, were also supporting the service, enabling their cards to be processed by eftpos for card-on-file payments.

“eftpos is synonymous with low cost debit card payments in store at retailers across Australia, and we’re excited to start making headway in the digital payment space,” Mr Benton said.

“It is early days but the service will increasingly enable more small and medium businesses to have Australia’s most popular cards – multi-network debit cards – processed by eftpos, and potentially deliver significant cost savings. These potential savings are particularly important for small businesses during COVID-19 and recovery.

“I urge small businesses that use card on file payments to talk to their digital payments providers about switching on the service.”

Card on file transactions are payments made from a card which is securely stored by the merchant or their payment system provider, for regular payments.

Some banks are supporting eftpos processing for regular payments initiated by the merchant, such as monthly subscriptions or payments initiated by the customer, such as occasional grocery orders.

Mr Benton said that if merchants were interested in accessing the new service they should contact their online payment service provider.

Aussie Broadband’s Managing Director, Mr Phillip Britt said: “We’re very excited to switch on eftpos’ digital payment solution. We believe this solution could potentially help Australian businesses reduce costs during these challenging times.”

Cluey Learning’s CFO, Mr Greg Fordred said: “As a rapidly growing online school tutoring business, Cluey Learning needed a low cost, scalable payment method. We’ve now moved to eftpos’ digital payments which we’re finding is a great solution.”


Card on file

Iconic Australian brands team up to trial eftpos digital identity and payments solution

eftpos today announced it is working with one of Australia’s best known brands, Australia Post, to pilot a new way of securely identifying consumers making payments in the digital world.

The eftpos digital identity solution, currently dubbed connectID powered by eftpos, aims to help Australian consumers protect their identities, avoid fraud and safely connect with merchants and government services using the ubiquitous eftpos payments network.

eftpos CEO Stephen Benton said the company was partnering with Australia Post to trial connectID.

Mr Benton said connectID used eftpos like a “broker” between identity providers such as Australia Post and merchants or government departments that need to verify who they are dealing with when making payments online.

“It’s great to have other iconic Australian brands like Australia Post onboard to trial this identity solution, which fills an important gap in the market at a time when Australians are going online to transact more often following the COVID-19 pandemic,” Mr Benton said.

“We are collaboratively working with businesses, online merchants, banks and other identity providers with a view to building identity into our national payments infrastructure for all Australians and Australian businesses before the end of the year.”

Mr Benton said eftpos had been working with almost 20 businesses across the country on the connectID Proof of Concept since early in the year and was now ready to move to the next stage.

He added the solution could be used to verify a consumer’s identity for a range of different reasons such as proof of age, address details, or bank account information. This could be used to identify individuals for eCommerce transactions, or to ensure government payments are made to the right person during crisis situations like a bushfire – with the potential to transfer the money much faster than existing arrangements allow.

Australia Post’s Head of Digital ID, Ms Margo Stephen said: “We’re really excited to be working with eftpos to grow both the awareness and adoption of digital identity in Australia.

“This collaboration has enabled eftpos to prove out its model rapidly by leveraging our existing, interoperable technology.   In turn, eftpos’ connectID, will offer even more places for those with an Australia Post Digital iD on their smartphone, to prove who they are when interacting online with both business and government.”

Interoperability is key to the connectID solution. It is designed to work within the Federal Government’s Trusted Digital Identity Framework (TDIF) and the industry’s TrustID framework, as well as emerging international standards.

“This is an exciting development because connectID reinforces eftpos as an important player in the digital ecosystem as a central identity broker for Australia and leveraging our payment network rails,” Mr Benton said.

Connect Id Image