Online shopping easier with Eftpos

Online Eftpos will make internet shopping attainable for anyone with a New Zealand bank account. PHOTO/FILE

The country's three biggest banks are teaming up to clear the way for customers to make online purchases using their Eftpos cards.

Currently, online buying requires a credit card to complete the transaction but Paymark is set to launch Eftpos online next year involving ASB, BNZ and TSB banks.

Mark Rushworth, Paymark's chief executive officer, said it will allow banks to offer a new, secure, convenient and simpler way for their customers to pay for online goods and services using their bank accounts and mobile device.

Mr Rushworth said a pilot is planned for late November with the official launch set for early 2015.

Online Eftpos payments work through secure digital "tokens", meaning customers don't need to reveal their financial details (including bank account information) to merchants when they are shopping.

And because online Eftpos is integrated with the mobile banking application, only financial institutions are privy to account details.

Mr Rushworth said the new payment option will make internet shopping attainable for anyone with a New Zealand bank account.

"Online retailers will also benefit from the new payment option as it will make online shopping accessible to a larger number of potential customers and lower checkout abandonment."

Paymark has run the payments network for the past 25 years and New Zealand has the highest penetration of retail electronic payment solutions in the world.

Russell Jones, ASB executive general manager of technology and innovation, said e-commerce was the fastest-growing payment category last year, as stores move more of their business presence to the web.

"Online Eftpos is a natural progression of a payment method first introduced in 1989 and now well embedded in Kiwi day-to-day life," Mr Jones said.

Paymark will look to bring on other banks over time.