Mobile Payments Put to the Test in Australia

The real test for mobile payments in Australia has commenced with the recent local launch of Apple Pay and Google’s Android Pay, with Samsung Pay tipped for the near future.

Australian Apple iPhone 6 and Apple Watch users have had access to the contactless payment system since November 19, though it’s only currently available for American Express customers.

Apple Pay works on the same principle as ‘tap and go’ systems like PayWave and PayPass, which Australian consumers have widely accepted.

While current tap and go solutions are limited to $100 per purchase, there isn’t a limit on Apple Pay transactions.

Samsung, which is collaborating with MasterCard, is expected to introduce Samsung Pay to Australia in 2016 and Google launched Android Pay in the United States in September.

Google’s Android Pay has seen the reinvention of its previous mobile wallet offering, Google Wallet. Google Wallet has been reissued as a separate app, now focused strictly on payments between friends and family like Square Cash and Venmo.

The list of Android Pay’s participating retailers and banks supporting the platform in the United States is growing steadily, as is Apple Pay’s.

But the introduction of mobile payment solutions in Australia is not without its challenges.

Firstly, none of the three platforms, Apple Pay, Android Pay and Samsung Pay, work on all devices.

While industry onlookers review the advantages and disadvantages of each of the three platforms, the biggest question for consumers isn’t which platform to use, but whether they should use it instead of a credit card. For widespread adoption of this technology, consumers need to be convinced to tap their phone instead of a card to make a payment.

Security and privacy fears have to also be effectively addressed with users through education on tokenisation technology. This is where credit card numbers and expiry dates are replaced by unique 16-digit tokens that can be cancelled or reissued, without impacting the original account number – a significant advantage over credit cards.

Indue is working with clients to unlock and explore the possibilities of contactless technology. Indue is collaborating with KPMG and a number of other financial institutions on developing the New Payments Platform (NPP) for Australia. Joined by senior representatives from the Australian banking and mutual sector and Australian Payments Clearing Association, Indue is also on the Program Delivery Authority (PDA) that oversees the NPP Program.

The NPP will allow anyone with an Australian bank account to make secure, contactless payments with any device with Internet access.

Indue is enabling the NPP’s unique technology, providing the gateway for real-time payments for our clients. With mobile payments continuously evolving, the Australian finance and banking industry must think creatively to keep pace.

To find out more about Indue’s involvement in the NPP Program and other leading-edge technologies, click here to contact a member of our expert team.

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