Environmentally plastic straws and single use bags have caused significant damage to our habitat. Our continued focus on their eradication is essential and being driven largely by a new generation. There is another form of plastic that could one day become an endangered species however…
Millennials are turning away from credit cards; just 41% of Aussie Millennials* and 33% of US Millennials have one*, compared to more than half of older consumers. We’re seeing this trend in New Zealand, too, where Millennials say they’d rather pay without worrying about a PIN number and want to be able to do more with their favourite device: their smartphone*. Whether it’s because they’ve been burned by the GFC, crippled by student loans or are simply more debt-averse*, younger consumers are the most enthusiastic age group when it comes to trying out new payment technology.
That’s probably why Kiwi retailers with younger demographics have driven the growing popularity and uptake of Online EFTPOS. No wallet? No credit card? No problem. You only need your phone and your banking app. It’s an incredibly convenient way to buy online with a few taps on your phone. Instead of entering your credit card details, you just enter your mobile number. A payment request is sent to your banking app – you’re in control of approving every transaction and your accounts are always completely up to date, with no ‘pending’ purchases. Your online purchase is processed like any other EFTPOS transaction, so it happens in a split second, allowing you to shop online at over 750 local sites without needing a credit card.
This year, for the first time, the number of New Zealand shoppers who can access Online EFTPOS has surpassed 1.5 million. In April Westpac joined early adopters ASB and Co-operative in offering Online EFTPOS to all its customers. That means if you’re a customer of any of these three banks, you can now use Online EFTPOS just by having the banking app downloaded on your phone (apparently your banking app is the most downloaded app!). You are never asked for your bank details, debit card or any other account information – just your mobile phone number, so you have control of every transaction. The charge appears in your account straight away. No need to worry about credit card interest charges or surcharges (those nasty fees added onto some credit card purchases).
Since its launch in 2017, Online EFTPOS has seen 20% month-on-month growth in transaction volumes. This isn’t only because it’s so convenient for consumers – it’s also a super cost-effective payment system for retailers. You can now use Online EFTPOS in over 750 stores, including Burger Fuel, Smith & Caugheys, Tank, Pita Pit, Mighty Ape, Life Pharmacy and iTicket to name a few. The fees for retailers are typically less than credit cards or contactless payments.
Unfortunately these fees are often passed onto the consumer in some way, either through a straightforward surcharge at the checkout or baked into the price of the purchase. A payment technology like Online EFTPOS is a great deal for retailers and we know that buyers really enjoy its simplicity and convenience. In the same way that EFTPOS was a win-win for Kiwi consumers and retailers, Online EFTPOS keeps costs down for everyone.
Online EFTPOS means retailers can affordably process payments from a wider range of New Zealanders, including people who choose not to have a credit card, those who don’t have credit, and all people who’d rather use EFTPOS for lower-value transactions. In addition, overnight settlement and no chargebacks mean Online EFTPOS reduces the risk of nuisance transactions and lost revenue for retailers, something that again impacts the cost of goods and services to New Zealand consumers It’s an ideal payment innovation for high-traffic websites where each transaction might have a low value, which is one reason Online EFTPOS is particularly popular in the fashion, hospitality and food and beverage sectors.
Making your e-commerce site compatible with Online EFTPOS isn’t complicated – developers can talk to Paymark’s support team and see more details about the system and its requirements here in our developer support centre. Some Kiwi retailers have been able to implement Online EFTPOS within 24 hours. Online EFTPOS is built on OPEN, Paymark’s Open Payments Enabled Network. It provides real-time transactions, maximum fraud protection, easy management and simple reporting tools.
Ultimately, Online EFTPOS is about choice: the choice of whether you want to have a credit card. The choice of how you pay. The choice a retailer can offer their customers at the right price. Test it out, see what you think, and talk to us today if you want to know more.