1. VOLUME 33 DECEMBER 2014
THE FUTURE OF
DIGITAL PAYMENTS
Visa and Apple
opening a new era
of payments on
mobile devices
National awards
aplenty for
Queensland Country
BPAY View takes
hold in 2014
Visit to Google HQ
offers unique insight
for QPCU
2. Indue Ltd ABN 97 087 822 464
Address all Latitude mail to
Latitude Magazine PO Box 523
Toowong QLD 4066
EDITORIAL TEAM
phone +61 7 3258 4265
fax +61 7 3258 4265
email latitude@indue.com.au
web www.indue.com.au
INDUE LTD
Manuel Garcia
Chief Executive Officer
phone +61 7 3258 4228
email mgarcia@indue.com.au
Derek Weatherley
Chief Operating Officer
phone +61 7 3258 4236
email dweatherley@indue.com.au
David Childs
Chief Financial Officer
phone +61 7 3335 4109
email dchilds@indue.com.au
Peter Anderson
Chief Risk Officer and General Counsel
phone +61 7 3258 4205
email panderson@indue.com.au
Matthew Hynes
Chief Technology Officer
phone +61 7 3258 4282
email mhynes@indue.com.au
Michael Swannell
Executive Manager Payments
phone +61 7 3258 4248
email mswannell@indue.com.au
Elizabeth Flynn
Head of Corporate Marketing
and Communications
phone +61 7 3258 4265
email eflynn@indue.com.au
Matt Adney
Executive General Manager –
Products and Services
phone +61 2 9479 8398
email madney@lynxfs.com.au
DISTRIBUTION
AUTUMN April 2015
WINTER July 2015
SPRING November 2015
Welcome to the December
edition of Latitude.
As the year rapidly draws to a close and Christmas
approaches, it is a great time to reflect on the
achievements over the last 12 months. Indue has
achieved outstanding results, but we continue to look
at ways in which we can give our clients a competitive
edge to attract and retain customers through the
products and services we provide.
This edition includes updates on a number of industry
initiatives with a particular focus on the future of digital
payments. On page 5 you can read about the exciting
development that is Apple Pay, while on page 4 there
is an update on the eftpos Central Payments Hub
going live. For those of you wanting some insight into
Google’s new products and business objectives, turn
to page 10 as Queensland Police Credit Union CEO,
Grant Devine, had the opportunity to visit the search
engine giant earlier this year. Finally, we congratulate
Queensland Country Credit Union on their outstanding
array of awards, including the Employer of Choice for
Gender Equality award from the Workplace Gender
Equality Agency.
I hope you enjoy reading this edition of Latitude.
We wish you a happy and festive season.
Kind regards
Manuel Garcia
CHIEF EXECUTIVE OFFICER, INDUE
3.
4. news
in brief
New era for Australia’s eftpos as
central payments hub goes live on schedule
eftpos has announced that its
new centralised payments hub
is now live, heralding a new era
for Australia’s most widely used
payments network.
eftpos Managing Director, Mr Bruce
Mansfield, said Bendigo and Adelaide
Bank, ING Direct, Suncorp Bank and
Strategic Payments Services (SPS)
were already connected to the hub,
with ANZ to follow before the end
of the year. Indue will connect to
the eftpos Hub in 2015.
Mr Mansfield said the hub would
replace a network of complex
bilateral links between financial
institutions and merchants that
had existed since eftpos was
first launched in Australia almost
30 years ago.
He said the new infrastructure
aimed to bring new eftpos
payments products, such as online,
contactless and mobile payments,
to market significantly faster and
more efficiently.
Just 11 months after we signed a
contract with FIS to build the eftpos
Hub, we are now live with a number
of financial institutions and
processing eftpos CHQ and SAV
transactions, Mr Mansfield said.
We expect all of our Members
to be connected to the hub by
September 2015, marking a
significant achievement in
industry cooperation.
This new centralised infrastructure
will boost payments efficiency and
innovation, helping to ensure that
eftpos continues to be a local,
trusted payments choice for
Australians into the future, as we
move to new technology platforms
such as mobile and online. The hub
also has the potential to carry other
payments traffic and support
industry initiatives.
5. Visa and Apple opening
a new era of payments
on mobile devices
New Visa Token Service facilitates
secure consumer payments with
new Apple devices.
This service is available in the U.S
with a broader rollout across different
markets to occur starting in 2015.
The global leader in payments
announced it is supporting consumer
payments with the new iPhone 6 and
other new Apple devices. Thanks to
a new capability called Visa Token
Service, participating financial
institutions in the U.S, and eventually
abroad, will be able to add Visa debit
and credit cards to Apple Pay, Apple’s
new payment service, and enable their
customers to make easy and secure
purchases at select merchants both
in stores and via apps.
Visa Token Service technology works
by replacing sensitive payment
account information found on plastic
cards with a digital account number
or “token” that can be safely stored
on mobile devices and used for in
store and via app purchases. Visa
will roll out the service to financial
institutions in phases – initially
supporting early participants in
the Apple Pay launch, and then
extending the service availability
to other card issuers.
“Combining the trust, scale and
security of Visa payments with Apple
Pay will accelerate adoptions of
mobile payments”, said Charlie Scharf,
Chief Executive Officer, Visa Inc.
“We said from the beginning that
token services would provide great
new consumer and merchant
experiences, and you’re seeing it
today in our efforts with Apple,
and there’s more to come.”
Apple Pay lets you make purchases in
some of the most highly visited stores
and within apps on the App Store with
just the touch of a finger, using the
new Apple devices. Visa account
holders will continue to receive all of
the rewards, benefits and security
offered by Visa credit and debit cards.
By enabling Visa account holders to
also make purchases in store and in
app with their new iPhone 6 and other
new Apple devices, consumers will
now have a seamless experience with
their preferred form of payment.
“The combination of new digital
experiences from Apple with new
network capabilities from Visa
provides for great payment
experiences and enhanced security
for millions of Visa account holders,
merchants and financial institutions”,
said Scharf.
Apple Pay lets you make
purchases in some of the
most highly visited stores and
within apps on the App Store.
LATITUDE VOLUME 33 DECEMBER 2014 PAGE 5
6. In November, Queensland
Country was announced
as an Employer of Choice
for Gender Equality (EOCGE)
by the Workplace Gender
Equality Agency.
Queensland Country is a consecutive
winner of the previous Workplace
Gender Equality Agency’s ‘Employer
of Choice for Women’ award. However,
EOCGE is special as it is the first to
be awarded under the new rigorous
criteria implemented by the
Workplace Gender Equality Agency.
The agency reviewed the citation
in 2013 to highlight the growing
recognition of the need to integrate
men into diversity initiatives with
a focus on promoting acceptance
around men taking parental leave
and working flexibly.
Also, hence the awards name change
from Employer of Choice for Women
to Employer of Choice for Gender
Equality.
Queensland Country is only one
of 76 companies to be recognised
nationally and only one of six
Queensland companies, down
from the 125 recipients when the
predecessor citation, the EOWA
Employer of Choice for Women,
was last awarded in 2012.
Queensland Country’s CEO Aileen
Cull said the recognition reflected the
company’s commitment to ‘our
people matter most’ philosophy.
“Queensland Country work hard to
provide equality in the workforce for
people of any age, background or
gender with working conditions and
training opportunities that support
our staff.”
Ms Cull said that the award means
a great deal, as it publicly recognises
the initiatives that Queensland
Country has implemented to value
every employee. Initiatives which
include eight weeks parental leave
and the Diversity and Equality Strategy.
“Queensland Country is proud to
continue to be an Employer of
Choice”, Ms Cull said.
When announcing the 2014 award
winners, Helen Conway, Director of
Workplace Gender Equality Agency
(WGEA) said:
“Holders of the 2014 WGEA Employer
of Choice for Gender Equality citation
should be celebrated and
championed as leading practice role
models and innovative thinkers on
issues of workplace gender equality.
National awards aplenty
for Queensland Country
7. They can be distinguished by their
commitment to “doing” rather than
simply “talking” and are driving the
lasting cultural and organisational
change that is essential for any
organisation committed to
maximising the potential of
women and men.”
This citation comes on the back of
two other major National Awards;
CANSTAR and Mozo.
Queensland Country Health Fund,
subsidiary company of Queensland
Country Credit Union, was awarded
the 2014 CANSTAR for Outstanding
Value Hospital Cover for the state
of Queensland. CANSTAR is an
instantly recognisable symbol
of value and integrity in the
marketplace.
The online comparison site for
financial services products
completes an annual review of
health insurance products offered
in the marketplace and then
measure the value of health
insurance products based on
benefits and price relative to a
number of different consumer
segments. Based on the annual
review for 2014, CANSTAR awarded
Queensland Country Health Fund
the state award for outstanding
value private hospital covers.
Ms Cull said that “Queensland
Country Health Fund has been
recognised for what we already
knew to be true – we offer the best
value range of hospital products
available in Queensland.”
“Our mission statement is to be the
best value health insurer in
Queensland – and this award
recognises that we are. This is
especially impressive considering
our health fund was reviewed
against all of the major health
insurers that sell health insurance
in Queensland – and was
considered to be the winner.”
Queensland Country Credit Union
has been awarded the Top 5 Credit
Union badge in the Mozo People’s
Choice awards for 2014.
Mozo is an online rating site
for financial services products.
Customers are asked to rate their
banking provider on overall
satisfaction, price, features,
customer service, convenience
and trust.
Mozo aggregates each provider’s
overall customer ratings in each
category to determine the winners.
In 2014 year over 200 providers
were rated, across one
or more product categories.
Queensland Country Credit Union
scored an average of 8.86 out of 10,
placing second overall in the Best
Credit Union Category.
Ms Cull concluded that these
awards, along with continuing
strong financial performance are
recognition of Queensland
Country’s commitment to our
Members and regional Queensland.
“We look forward to the opening of
our new retail Branch and Head
Office in Townsville in January 2015.
We recognise the need to continue
to develop and improve the services
to Members and staff and our new
facilities in Townsville are important
steps to ensure we remain relevant
and valued in a competitive
banking environment.”
“Queensland Country work hard to provide
equality in the workforce for people of any
age, background or gender.”
LATITUDE VOLUME 33 DECEMBER 2014 PAGE 7
8. The Milestones Report released
by the Australian Payments
Clearing Association, the
payments industry self-regulatory
body, shows that as with cheques,
Australian consumers are
increasingly giving up cash in
favour of cards, mobiles and
online solutions.
But unlike cheques, cash will not
disappear as a payment method
in the digital economy, remaining
as a default method if nothing else
is available.
The Report on Australia’s progress
on transitioning payments to the
digital economy provides a special
focus on cash. It draws from APCA-
commissioned research The Evolution
of Cash: An Investigative Study
developed by RFi Consulting which
has also been released. Both reports
are available at www.apca.com.au.
The new research shows that
Australians are using less cash as
the uptake of contactless and other
electronic payments continues to
gain pace. The number of cash
payments has declined 5% since
2005 – down to an estimated
11.7 billion in 2013 – reflecting the
changing way in how consumers pay.
This decline is predicted to accelerate,
dropping a further 20% over the next
few years before it plateaus in 2018.
The decline in cash use is supported
by recent figures released by the
Reserve Bank of Australia. In
February 2014 there were 57.3 million
cash withdrawals from ATMs – down
from 60.0 million in February 2013.
The value of these withdrawals
dropped 9% to $10.8 billion.
As the economy grows, cash needs
will decline as digital methods
dominate new activity.
APCA CEO, Chris Hamilton, said: “We
will always have a need for cash, but
the take-out here is that cash won’t
be the first or only choice for making
any payment, regardless of what it’s
for. Australians love their “tap and go”
cards, and we are going to see lots of
competition and innovation in mobile
payments in the next few years.
Consumers are going to find that
cash is not their first choice any more,
even for convenience items like a
coffee. Increasingly, they may also
find that automated, super-convenient
consumer services will accept a
wide range of digital payments –
but not cash.”
The RFi study also shows that the
share of cash within all of the
payment transactions made in
Australia has dropped from 73% in
2005 to 59% in 2013, with a further
share decline forecast to 43% in 2018.
RFi Consulting CEO, Lance Blockley,
said: “As the Australian economy
continues to grow, so does the total
number of payments being made.
The fact that the number of cash
payments is now decreasing means
that this form of payment is not only
missing out on this overall market
growth but is being displaced from
where it was previously used.
Australian consumers and businesses
are adopting new electronic methods
based on a variety of factors,
including speed, convenience
and security.”
Other key points in today’s
Milestones Report include:
• The rapid decline of cheque use in
Australia continues with a 13.3%
drop in 2013, compared with
12.5% in 2012.
• Cheque values remain stable,
suggesting that cheques are
predominantly used for higher
value business payments,
rather than personal payments.
Australians embracing
digital payments
APCA releases new report on transitioning
payments to the digital economy
“Consumers are going
to find that cash is
not their first choice
any more, even for
convenience items
like a coffee.”
9. 204 BPAY View billers, with 111
added in 2014, covering 94% of the
major Australian billers by volume.
Over 340,000 new
BPAY View registrations.
BPAY View takes hold in 2014
A key focus for the BPAY
Scheme in 2014 has been the
promotion and growth of the
BPAY View service. This has
paid dividends due to a three
pronged approach.
The first challenge has been
ensuring consumers are aware
of the service. The most recent
BPAY View campaign featuring
our “Letter Box Man” which
wrapped up in media at the end
of August was incredibly successful.
Consumer awareness increased by
6% from prior to the campaign
running, with almost half of the
Australian adult bill paying
population now aware of the
service. Importantly consideration
to use the service in the future
among non-users has risen to
45% of the population, and among
existing users 74% plan to sign up
for more bills.
This has translated to registration
growth of 340,000 new BPAY View
registrations this year.
The second part of the equation
has been growing the biller base.
In 2014 an additional 111 billers
have been added, bringing the
total number of billers to 204.
This biller base now covers 94%
of the major Australian billers by
volume. From a consumer
perspective, this means that most
Australians can get their major bills
delivered to their internet bank,
whether it is a council rates notice,
mobile, telephone or utility bill.
The expectation is this growth rate
of biller sign up will continue into
2015, further bolstering the BPAY
View service proposition.
The final aspect of our approach
has been working with our
Members, providing best practise
guides for implementing and
improving the service and
encouraging promotion.
This is a vital part of the equation
and we encourage any Member
to contact the Scheme office if
support is required.
Indue joins as a Participant
Member of the BPAY Scheme
BPAY is delighted to have Indue
join as a Participant Member of
the Scheme from October this year.
Indue has always played an active
role in the Scheme and we look
forward to their positive
contribution moving into 2015.
Disclaimer: BPAY View is offered by more than
150 BPAY Payer Institutions. Contact your
financial institution to see if it offers BPAY View
and to get the terms and conditions. This is
general advice – before using BPAY View
please review the terms and conditions and
consider whether BPAY View is appropriate for
your personal circumstances.
LATITUDE VOLUME 33 DECEMBER 2014 PAGE 9
10. “It’s never been more important to be relevant
to our members, and to exceed the level of
service and experience that they expect.”
Visit to Google HQ
offers unique insight for QPCU
It would be hard to find an
industry on the planet that
hasn’t been affected in some
way by the digital revolution
of the past decade.
Global companies such as Google,
Apple and Visa have helped to shape
consumer experience across many
industries, financial services included.
In July this year, QPCU CEO and
Indue Director Grant Devine had the
unique opportunity to visit Google
headquarters in Mountain View,
California and received an insight into
the search giant’s new products and
business objectives.
Grant’s tour of the facility was
conducted by Frank Young, a
Business Development Manager
working on ‘Google Wallet’.
It’s just one of a number of Google
products that aims to change the
way consumers go about their
everyday business.
‘Google Wallet’ integrates with your
mobile phone and makes it easy to
pay - in stores, online or to anyone in
the US with a Gmail address. It works
with any debit or credit card, on
every mobile carrier.
It is not yet available here, but the
Australian market has been favoured
historically by Google as a testing
ground for product expansion.
A presentation on the business
objectives of the ‘Google Wallet’
project made it very clear that
Google sees its key outcome as
“joining the dots” in making life
easier for consumers. Finding ways
to make members’ lives easier is
something considered very
important by the QPCU executive
management team.
Just last year, QPCU made a market
leading move by allowing members
to change their own PIN numbers
online and has also seen great
success with its new mobile app
exceeding download expectations.
11. The mobile application alone has
been downloaded by over 15 per
cent of internet banking members,
just two weeks after it launched.
It’s not just younger members making
use of QPCU’s online services, with
a third of QPCU’s internet banking
users aged 53 or older.
Grant said his visit to Google had
further highlighted the importance
of being an early adopter of new
technologies, whilst noting the
unique consumer trends of the
US marketplace.
“It’s never been more important
to be relevant to our members,
and to exceed the level of service
and experience that they expect,”
said Mr Devine.
“Our digital platforms are well
received by members, but we are
on a constantly evolving journey
to improve our online offerings.”
The trip to Google HQ has also
inspired QPCU to look into its own
use of customer data, and has led
to a new data warehousing project.
The long term plan is to help the
credit union better understand its
members, their needs and
requirements. Projects like this
will help better inform exactly
how members interact with
QPCU and decide what digital
services to provide next.
LATITUDE VOLUME 33 DECEMBER 2014 PAGE 11
