Australian domestic payment schemes to merge
Australia’s three domestic payment organisations, eftpos, BPAY Group and New Payments Platform Australia (NPPA) intend to amalgamate to face off the threat from the growing scale of overseas multinational payment platforms.
The merger is the result of a review by the Reserve bank of Australian which noted consolidation of some domestic payment groups should be considered.
The amalgamation, agreed by an industry committee representing all stakeholders, 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 catering to changing consumer expectations and technological advancements.
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 existing payments methods; including BPAY, Osko, eftpos, Beem It and PayID. Each entity will continue to have its own operating governance and management schemes.
Industry Committee chairman, Robert Milliner, says 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,” he says. “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.”