Digital disruption in payments

Digital disruption in payments - Intech Credit Union

By Robert King

There have been some irreversible ‘mega-trends’ in banking over the past 20 years, such as the rise of mortgage brokers and the provision of online banking and we are on the cusp of another mega-trend in the payments market. There are three highly significant developments converging which will effect the way we all exchange value and information.

Firstly, Australians love contactless payments which today generally means taking a plastic card out of your wallet and presenting it to a terminal. Secondly, Australians love smartphones (and watches). The third piece of the puzzle is the New Payments Platform which is scheduled to go live in Australia in late 2017. The NPP will deliver the ability to pay to an email address or mobile phone number (rather than a BSB and account number) instantly and with large amounts of data (e.g. a message or an invoice) included.

These developments will see a significant consumer behaviour change over the next couple of years with a rapid decline in the use of cash and cards and the rise of payments using smart devices. For some people, the concept of a wallet full of plastic cards is destined to go the way of the video cassette. Intech will ensure that we keep abreast of developments and meet the needs of our members as this technology evolves.