EFTPOS rolls out trial for new cards, but faces competition from banks

ePal Australia will launch a trial this week with new, upgraded EFTPOS cards that allow users to make payments through mobiles and contactless terminals in order to compete against growing power from both Visa and MasterCard.

However, the announcement may be overtaken by a similar one from the Commonwealth Bank, which has sent out press invitations suggesting the company will be making a large mobile-related announcement next week.

ePal will launch the trial in conjunction with employees from Bendigo and Adelaide Bank, in one of the largest changes to the payment system in several years.

It comes as EFTPOS is attempting to beef up its marketing power as it competes against Visa and MasterCard. Part of that push has seen a substantial increase in marketing, with new television and print advertisements.

ePal was contacted this morning, but no reply was available prior to publication.

Managing director Bruce Mansfield has said the upgrades come as part of a shift towards flexible payments.

“This is a natural evolution in enhancing the security of EFTPOS and building a platform… for future product development. We are closing the gap domestically,” he told the Australian Financial Review.

ePal recently upped its interchange fees, which are the payments retailers and merchants must make when making transactions through cards. Part of the reason for the jump was to invest more money into improving infrastructure.

As a result, Mansfield is tipping a greater investment in contactless payments and mobile payments – the new cards will also allow users to purchase products online, which have been one of the major advantages of Visa and MasterCard products over EFTPOS cards.

“There are a number of things we are considering on product development,” Mansfield said.

But while EFTPOS has the majority of the market for domestic debits, it continues to face competition, especially from banks which may be developing their own mobile schemes.

Last week, Commonwealth Bank sent out press invitations to an event next week, using the words “the future is coming”.

It says the bank will be launching a “groundbreaking new mobile application”.

Commonwealth Bank was contacted by SmartCompany this morning, but was told it could not reveal any more about the announcement until next week.

All the big four banks have been focusing on mobile payments for some time now. While all banks have their own mobile websites, many are focusing on how they can integrate other types of payments, including contactless.

Earlier this year ANZ ran a trial with iPhones using contactless technology, but has said it is not ready to commercialise the technology yet.