Westpac launches Mobile PayWay as SME payment market heats up

Westpac is the latest of the big four banks to launch a mobile payments app, Westpac Mobile PayWay, for small businesses. But how does it measure up to its rivals?

Westpac Mobile PayWay allows small business merchants to process MasterCard and Visa card payments in real time. According to Westpac, the app is the first of its kind.

Westpac currently offers a PayWay terminal through a browser-based solution for those who prefer this option. The app is currently being trialled by a group of small business owners.

According to Axel Boye-Moller, who is responsible for Westpac’s consumer lending and payments products, small businesses want technology that supports their day-to-day operations.

“Westpac’s Mobile PayWay will allow small operators the ability to have payments for jobs processed on the go… [and] keep track of their payments simply via their iPhone,” he says.

Mobile PayWay will allow small businesses to view their last 20 transactions, refund any of their last 20 transactions, and send an email receipt to customers immediately.

The app requires a log-on name and password, and does not store cardholder details on the app or the iPhone.

Westpac is the third major bank to launch a mobile payments app, following in the footsteps of ANZ and the Commonwealth Bank.

However, a spokesperson from CANSTAR, which researches retail finance information, says CBA’s Kaching app is “probably more to do with personal uses”, as is ANZ’s GoMoney app.

Here’s how they measure up:

Commbank Kaching

Launched in October last year, Commbank Kaching offers near-field capabilities but was originally limited to iPhone users.

The app combines peer-to-peer payments via the phone’s contacts and email addresses, social payments via a user’s Facebook friends, and NFC contactless technology.

Kaching customers receive money directly into their accounts in real time. While non-CBA members can still use the app, there’s an additional online step involved when transferring funds.

The app users a four-digit pin, while a countdown timer enables the NFC chip for a 60-second period. It also shows the nearest ATM location via the GPS chip within the iPhone.

Users can top up their credit cards via Kaching, as well as set a specific card to be PayPass-enabled or switch it off whenever they choose.

Yesterday, CBA announced a number of new developments for the app, including the fact that it is now available on Android-powered smartphones.

Meanwhile, iPhones have received an Australian-first, “bump payments”, which allow money to be exchanged or a payment to be made by tapping two phones together.

CBA also announced it will launch the app for Facebook later this year, allowing customers to do all their banking without leaving Facebook.

ANZ GoMoney

ANZ launched the GoMoney iPhone app in September 2010.

Users access the app with a four-digit pin, rather than a username and password, and payments up to $1,000 can be transferred to anyone with a mobile number and an Australian bank account.

Recipients not registered to GoMoney receive an SMS with a code that will allow them to collect the funds from a secure site.

ANZ said at the time it was looking at rolling it out onto other platforms, and would look at adding the ability to pay bills in the future.

It said it was the first bank to offer a person-to-person payment option via an app.