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Caltex and Woolworths blocked on contactless payments

30 January 2009 6:07PM
Woolworths will not be able to make its contactless payment mechanism at fuel pumps the only pay-at-pump option at petrol stations it controls under a draft notice published yesterday by the Australian Competition and Consumer Commission.In October Woolworths sought clearance for the plan that would introduce the pay at pump option for the first time at Caltex Woolworths and Caltex Safeway petrol stations.Some other petrol retailers offer pay at pump options, though with conventional swipe systems. Woolworths favoured its own contactless solution, and will also have seen the proposal as a way to drive demand for the Woolworths Everyday Mastercard, issued by HSBC.Plenty of banks and payment entities opposed the Woolworths plan, mainly on the grounds that it breached competitive principles (including almost a decade's worth of reform to open up the payment card market), as well as breaching the "honour all cards" principle.The ACCC in its draft ruling said it was concerned that the arrangement would distort the competitive process between card issuers, which would typically compete on features such as interest rates, fees and reward programs.Woolworths told the ACCC that it considered the two other existing contactless payment technologies in Australia, the MasterCard PayPass and Visa payWave systems, did not provide the necessary access or functionality required to make fuel purchases at Caltex Woolworths/Safeway outlets.

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