Eftpos Australia will begin piloting a new Quick Response (QR) code payments platform in June, with a view to launching a national multi-channel transaction network next year.
Community acceptance of QR codes in the payments process has grown slowly in Australia compared to other Asian countries, but research indicates that it has increased during COVID-induced lockdowns in the last year.
While Eftpos is set to be the first payments scheme to roll out QR code functionality in the domestic market, global payments providers such as Mastercard and Visa are likely to follow.
QR code technology allows debit cardholders to transact across internet, mobile and instore retail channels with the benefit of not having to punch card details into websites or merchant devices.
It relies on shoppers downloading their card details to a mobile wallet and then using the wallet screen to accept a digital code generated by the merchant on a website or a point of sale terminal.
A consumer taps their mobile wallet over a QR code displayed on the screen of a computer or a POS terminal to initiate a payment transaction.
A feature of the service is that it can instantly credit loyalty points to the customer if he or she has linked a loyalty scheme to the mobile wallet.
It also allows merchants to issue digital receipts.
The network build is a strategic play for Eftpos which is looking to compete against Visa and Mastercard in the burgeoning internet payments market space.
Eftpos chief executive Stephen Benton said the roll out of the QR platform comes at a time when Australians were becoming familiar with mobile wallet technology through digital shopping and COVID-19 check-ins.
“Digital transactions enabled through the national QR code payments network aim to elevate and enrich the consumer payment experience while driving growth for local businesses,” Benton said.
“It is intended to seamlessly link loyalty, offers, receipts and more, while also driving deeper customer engagement.”
Payments experts are divided on whether Australian consumers are likely to acquire payment habits driven by mobile wallets and QR codes.
Grant Halverson of Melbourne-based payments consultancy McLean Roche welcomed the Eftpos move, saying it had been a long time since domestic scheme had brought a product innovation to market ahead of Visa and Mastercard.
“Adding QR codes to current debit cards will require each consumer to access a digital wallet on a smart phone – the question is how many consumers will do this and how quickly?” he said.
“Currently Australia has one of the highest use rates for contactless payments and very low use of phones as payment tools.
“The big opportunity is clearly for online transactions with the QR code adding a much-need security layer.”