Mobile Payments in Australia
Cell Payments in Australia
Mobile payment is a response to the need to make life more comfortable for consumers in the purchase of goods and services without location restriction. It makes it possible for commerce to thrive on multi-channel payment systems and not necessarily by conventional payment methods only.
One wonders if the business space would be able to cope in global e-commerce without efficient mobile payment system and if a country could raise its head in the comity of the international trade community without access to the mobile payment system to provide for the ever busy, mobile and growing consumer population in our urban communities.
The ground for mobile payment in Australia
A Deloitte survey revealed fascinating facts about the Australian mobile life as follows:
- 70% Australians access the internet through mobile phone
- 50% use tablet for accessing the internet
- 68% use more than three internet-enabled devices to access the internet
- 23% Aussie use more than five devices to access the internet
With more than 15 million smartphones in use in Australia, the ground is sufficiently set for mobile payments where the business communities can hope to make substantial sales through mobile payments in a multi-platform payment infrastructure.
Australia, just like all leading countries of the world, is a prominent member of the international business community where its business sector serves both local and international markets and the same way Australians patronize goods and services provided by local and international businesses requiring the use of mobile payments for robust commerce.
How Mobile Payments systems work?
- Direct to Bill (D2B)
- Premium-rate SMS (PRSMS)
- WAP billing
- SMS Payments
- Person-to-person (P2P)
- Smartphone apps
- Near-field communication (NFC)
- In-store payments
Role of banks in Mobile Payments in Australia
At the leading role of ensuring efficient mobile payment system in modern societies are the banks who serve as the gatekeepers in modern commerce to ensure transactions between buyers and sellers go smoothly. And as expected, the banks in Australia are living up to expectation with American Express providing all three Mobile Wallets in Australia.
The bold move by AMEX is providing the backbone for mobile payment service providers to open their doors to more mobile payment subscribers to use the available platforms to transact massively in various online business transactions.
Among the leading mobile payment service providers in Australia, we list a few as follows:
Samsung Pay. This mobile payment option functions as a virtual magnetic swipe, unlike the NFC technology. It also uses fingerprint authentication for secure mobile payments transactions; security in mobile payment is the most important guarantee for most consumers. Samsung Pay App is available for Galaxy S6, S6 Edge+, Note 5, Galaxy S7 and S7 Edge.
Apple Pay. Apple Pay uses NFC for contactless payments and uses fingerprint authentication for enhanced security. Apple Pay is with Amex and ANZ and expected to partner with more Australian banks. Apple Pay can be used on iPhone 6, 6 Plus, 6S, 6S Plus, SE, and Apple Watch.
Cash by Optus. Provides mobile wallet with NFC capable accessories such as the standard sticker, wearable band and SIM card capable of running on NFC-enabled phones. A user can link their mobile wallet to any Aussie Bank account to add funds up to $500. Cash by Optus can be used on any 4.0 and above Android and on iPhones except 3G, 3GS and 4 including iOS 8 and above.
Coles Mobile Wallet. This mobile payment is for customers with Coles MasterCard and using Android 4.4 and above including iOS 7. The Coles Mobile Wallet is a simple system that works through an NFC sticker for capable phones.
The Google Wallet. Provides a direct link to a credit card, debit card or prepaid card to enable payments by tapping subscribed Smartphone on at the participating outlet’s PayPass terminals.
Banks providing mobile payment supports in Australia
The success of any commercial payment system requires active cooperation of the financial services and Australian banks have developed vital programs to support mobile payments, although more efforts are expected due to the sensitivity nature of the mobile payment. At the different level of industry best practice application support for mobile payments, the following banks are active participants in Mobile Payment support.
- ANZ Mobile Pay
- Commonwealth Bank Tap & Pay
- CUA redi2Pay
- Lombard Finance Tap2Pay
- NAB Pay
- Westpac Tap and Pay
Benefits of Mobile Payments
It should be noted that Mobile Payment comes with risks and benefits; we look at a few below:
Ease of use. Mobile Payment has made payment processing easier, and this is helping to boost sales and make life more convenient for consumers.
It enhances bank-account-free transaction. In the past, for a simple buying and selling transaction, you need a bank account, but with mobile payment, there is no reason to own a bank account.
Cut-down on investment. Mobile Payment facilitates instant transaction without the need to invest in fixed internet connectivity or transact in a bank. It's helping bank serves more people and helping more people have access to bank payment services without the need for conventional brick and mortar infrastructure.
Instant payment. The beauty of face-to-face commercial transaction is the factor of being able to make and receive payment on the instance without time lapse; mobile payment re-ignite the same scenario as payment is paid and receive without delay.
Convenience. Imagine needing to pay for an energy bill when your credit is exhausted in the middle of the night; mobile payment gets you your energy payment like any time of the day with one-time instant payment.
Mobile payment is part of holistic financial service delivery that financial institutions must brace up for its seamless interaction with another payment system in the sector. The society needs more convenient ways of transactions to make life easier than it is at present. As the technology improves, one expects more advancement in the mobile payment system to cover wider ground and become even more efficient in the payment for goods and services across Australia.