eftpos Enters Digital Identity Fray
(13 April 2020 – Australia) eftpos is planning to shake up the digital identity market by announcing its model is now moving into the trial phase. The Australian payments company wants to add its solution to those used to access government services.
Following the completion of a proof of concept of its digital identity solution with 17 Australian enterprises, eftpos it is working with industry to build something that "could have significant advantages for the economy and society".
eftpos asserted that its approach provides a ‘smoother, faster, and more secure onboarding experience, including for government services’. The group confirmed it has access to more than 40 million bank accounts that utilise bank verification systems with eftpos' capability, and that its relationship with local banks would allow it to provide digital identity services.
The company also said it could provide fintechs with low-cost access to a range of new marketplaces and channels that currently have high barriers to entry but help reduce the impact of fraud, protect the identities of Australians, assist businesses meet their regulatory obligations, and keep the personal data of Australians onshore.
"It makes sense for eftpos to provide this service because we are Australian-based and our transactions are processed here. In addition, eftpos is not owned by or beholden to any other commercial provider so it can operate as a neutral provider of Digital Identity solutions, maximising their take up and use across the broader economy."
"We believe there will be a critical need for increased competition in digital payments, as well as an Australian-based digital identity solution to help facilitate this accelerated digital transition and provide opportunities for the fintech community" eftpos released in a statement
eftpos confirmed its members have already made systems changes to enable online digital transactions.
"For many months, eftpos has been successfully running this service with a number of retailers in Sydney, as well as payment gateways and small issuers. With government support, we now want to work with major banks to turn on this service more broadly, starting with low risk card on file transactions.
"eftpos digital payments would give fintechs the ability to initiate and process payments at low cost and in real time, with various use cases across the economy. This change would also assist merchants reduce costs during the coronavirus crisis and recovery period, while also providing exciting new opportunities for the fintech community, at no cost to government."
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