The latest stage of eftpos’ online security technology went live this week and a number of Australian banks, FinTechs and merchants are set to rollout the capability over the next 12 months.
The new online security capability features two factor authentication capability for merchants and their customers. It is said to be “a crucial milestone” in the evolution of Australia’s digital payments ecosystem.
eftpos’ new sovereign debit scheme online follows the Reserve Bank of Australia’s decision in October that Australian banks are expected to offer and promote Least Cost Routing (LCR) in online by the end of 2022.
Eftpos CEO Stephen Benton says the support of banks, FinTechs and payments providers like Till Payments, Fat Zebra and EFTEX will help the solution scale quickly in the Australian market next year and provide benefits for merchants and consumers, including LCR.
“This is a game changer for eftpos and Australian retailers because retail is quickly transforming to become an increasingly digital marketplace, accelerated by Covid,” he says.
“Big economic benefits could flow from increased competition in addition to enhanced payments security.”
He adds that eftpos’ extension further into online payments will quickly drive much needed large-scale competition and should place downward pressure on transaction costs.
“Our suite of world class eCommerce products and services are part of a $100m eftpos funded digital upgrade to deliver the next generation of secure payments technology,” he says.
Before this week’s announcement, eftpos was already available in online for some Card On File payments where banks have implemented the service for their merchant customers, and Deposits and Withdrawal payments via the Beem It mobile wallet. Since launching the eftpos digital service that enables LCR last year, it has been subject to zero fraud.
Mr Benton said eftpos’ security kit bag now included two factor authentication (3DS), tokenisation, automated Disputes and Chargebacks and a digital identity solution, connectID, with a new fraud detection engine also going live in the coming weeks.