Regulate Apple Pay, says CBA

Original article by James Eyers
The Australian Financial Review – Page: 1 & 22 : 28-Jul-21

Commonwealth Bank CEO Matt Comyn appeared before the parliamentary joint committee on corporations and financial services on 27 July. He told the committee that Apple Pay is now an essential service in the payments system and should therefore be subject to greater regulation, given that access to the iPhone’s near-field communication chip is restricted solely to Apple’s own digital wallet. Tom Leuner from the Australian Competition & Consumer Commission also noted that restrictions on access to the chip could potentially raise competition concerns. Some 9,000 banks worldwide now use Apple Pay, including Australia’s four major banks.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. PARLIAMENTARY JOINT COMMITTEE ON CORPORATIONS AND FINANCIAL SERVICES, APPLE INCORPORATED, APPLE PAY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

‘Never going back’: pandemic pushes more to digital wallets

Original article by Finbar O’Mallon
The Australian Financial Review – Page: 3 : 8-Mar-21

Travis Tyler from neobank 86 400 suggests the pandemic has had a bigger impact on the future of banking than the banking royal commission. He notes hygiene concerns have prompted an increase in the number of people using digital wallets in preference to traditional wallets, with financial broker firm Savvy revealing almost 50 per cent of Australians have set up a digital wallet in the past year, while almost half of those people surveyed by Savvy prefer paying with their digital wallet. Marcus Crafter, a developer with digital bank Up, claims that Australians are "never going back to cash".

CORPORATES
86400 PTY LTD, SAVVY, UP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Late payers put on notice

Original article by Robert Gottliebsen
The Australian – Page: 21 : 25-Jun-20

The federal government proposes to introduce a new supplier payments disclosure regime for businesses with turnover of $100m or more. They will be required to submit regular reports on how quickly they pay the invoices of small business suppliers. The disclosure regime takes effect at the start of 2021, but the 3,000 or so large enterprises that will be affected need to start preparing for it immediately. The proposed Payment Times Reporting Regulator will be responsible for enforcing the legislation and determining whether a supplier is a small business for the purposes of the disclosure regime.

CORPORATES

RBA tips fewer ATMs and an end to cheques

Original article by Joyce Moullakis
The Australian – Page: 17 : 4-Jun-20

The Reserve Bank of Australia could introduce a ‘least-cost routing’ regime for credit card transactions unless merchants take the initiative themselves, according to assistant governor Michele Bullock. This is among the options that will be considered in the RBA’s review of the payments system. Bullock also notes that the coronavirus pandemic has seen a sharp downturn in ATM usage, which may prompt the nation’s ATM network to be scaled back. She adds that cheques could soon be phased out, given that this payment option has been in steady decline for the last two decades.

CORPORATES
RESERVE BANK OF AUSTRALIA

Apple Pay drives contactless mobile payment increase; older Australians might need a nudge

Original article by Roy Morgan
Market Research Update – Page: Online : 13-May-20

Data from the Roy Morgan Digital Payments Report shows a sharp increase in use of non-bank contactless mobile payment services compared to a year ago. A total of 10.8% of Australians now use non-bank contactless mobile payment services such as Apple Pay and Google Pay, up from 7.1% a year ago. Apple Pay is now used by 6.5% of Australians (up from 4.1%) and Google Pay is now used by 4.1% (up from 3.6%). Samsung Pay is unchanged at 1%. Analysis using Roy Morgan’s Helix Personas shows that Metrotechs are the most likely to use non-bank contactless mobile payment services, with 16.9% of people in this community using either Apple Pay, Google Pay or Samsung Pay. These digital payment findings are from Roy Morgan Single Source, Australia’s leading consumer survey, compiled by comprehensive interviews with a sample of over 1,000 Australians each week.

CORPORATES
ROY MORGAN LIMITED, APPLE PAY, GOOGLE PAY, SAMSUNG PAY

What’s our strategy for slump in wake of virus?

Original article by Robert Gottliebsen
The Australian – Page: 25 : 26-Feb-20

Research by Roy Morgan shows that one-in-six Australian businesses have already been impacted by the coronavirus outbreak. This includes sectors of the economy that are among the biggest employers, such as manufacturing and education. However, small and medium enterprises are likely to be hardest hit by the economic fallout from the virus. The federal government is therefore to be commended for proposing to require large companies to pay suppliers more promptly. At present, the proposed legislation only applies to businesses with turnover of up to $10m, but it should be expanded to include medium-sized businesses.

CORPORATES
ROY MORGAN LIMITED

Rio joins Telstra in supplier backflip

Original article by Jared Lynch, Nick Evans
The Australian – Page: 17 & 20 : 6-Feb-20

Rio Tinto CFO Simon Trott has advised that about 90 per cent of its Australian suppliers will now be paid within 20 days. Businesses with annual turnover of up to $10m will also now be designated as a small supplier, rather than just those which supply up to $1m worth of goods and services to the resources giant each year. Rio Tinto recently shelved its ‘dynamic discounting’ scheme, while Telstra has also reduced its payment terms to just 20 days. Small Business & Family Enterprises Ombudsman Kate Carnell says other large companies should do so.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN

Rio mining big data, AI to bleed desperate suppliers

Original article by Jared Lynch, Nick Evans
The Australian – Page: 15 & 18 : 28-Jan-20

Rio Tinto has stressed that it is committed to 30-day payment terms for its suppliers, following reports that it is offering to pay invoices before the due date in exchange for a discount of up to two per cent. The so-called ‘dynamic discounting’ scheme is generating significant cost savings for Rio Tinto, but it has attracted criticism from Small Business Ombudsman Kate Carnell and Western Australian Premier Mark McGowan. Rio Tinto is also said to be using big data and artificial intelligence technology to determine how much of a discount a supplier is prepared to accept.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

RBA says no to Facebook’s new currency

Original article by Matthew Cranston
The Australian Financial Review – Page: 3 : 10-Jan-20

Facebook’s proposed Libra cryptocurrency should not be allowed to proceed in Australia without major regulation, according to the Reserve Bank of Australia. The RBA expressed this view in a submission to the Senate Select Committee on Financial Technology and Regulatory Technology, with the RBA querying whether there would be much demand for Libra from consumers. The RBA stated Australians were already well served by a range of inexpensive and efficient real-time payment methods.

CORPORATES
FACEBOOK INCORPORATED, RESERVE BANK OF AUSTRALIA

Women more likely to use Buy-Now-Pay-Later services

Original article by Roy Morgan
Market Research Update – Page: Online : 9-Sep-19

New research from Roy Morgan shows that women are significantly more likely to use buy-now-pay-later payment services such as Afterpay, Zip Pay or Zip Money than men. Over one-in-ten women (11.6%) report using a buy-now-pay-later service in the last year, compared to only 5.5% of men. In addition to greater user of buy-now-pay-later services, women are also more likely to use the more traditional Bill Payment Services such as BPAY and Post Billpay with nearly three-fifths of women (59.1%) using a Bill Payment Service in the last year compared to 55.8% of men. However, men are more likely than women to use other digital payment services, including Online Payment Platforms such as PayPal and Other Contactless/Cardless Mobile Payments services such as Apple Pay. These are some of the findings from the newly released Roy Morgan ‘Digital Payment Solutions Currency Report’ June 2019. The data in this latest report is from Roy Morgan’s Single Source survey which is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes.

CORPORATES
ROY MORGAN LIMITED, AFTERPAY TOUCH GROUP LIMITED – ASX APT, ZIP PAY, ZIP CO LIMITED – ASX Z1P