Eftpos could ‘cease to exist’ without merger or regulation: expert

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An independent expert has warned that Eftpos could cease to exist within a decade unless the country’s three domestic payment organisations are allowed to merge, or regulators take major action.

In a merger that has attracted criticism from some retail groups, BPay, Eftpos and the New Payments Platform Australia are seeking to amalgamate, as the industry deals with digital disruption.

Mr Blockley argued the merger would create a stronger competitor to the likes of Visa, Mastercard and technology giants eyeing the payments sector such as Google and China’s WeChat. He pointed to a long-term slide in Eftpos’ market share, and said he thought it would be out-competed by the international schemes unless it was part of a “bigger, more robust organisation.”

Eftpos chief executive Stephen Benton said:“For over 35 years, Eftpos has been giving Australian customers and businesses access to reliable, affordable and safe payments. We pride ourselves on offering customers low cost acceptance options and intend to continue to deliver this.”

 

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Sounds like something for doctorow but not sure he writes too much on Australian “competition” law.

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