What is online EFTPOS?

Online EFTPOS is a payment option appearing across more and more stores and services around New Zealand, including retailers, councils and hospitality venues.

But what is online EFTPOS, how does it work, and should your organisation adopt it as an alternative online payment offering?

How does online EFTPOS work?

Online EFTPOS is similar in some ways to POLi, in that it is a system which facilitates an account-to-account transfer from a customer to a merchant using online banking.

Specifically, online EFTPOS makes the use of a bank’s online banking app. When a customer chooses to pay with online EFTPOS, they are prompted to type in their mobile number at the point of purchase, then indicate which mobile banking app they have installed.

At that point, they switch to their phone to log into their banking app of choice and approve a payment request which they will have just received. Money is removed from their account immediately.

Is online EFTPOS available to everyone?

No, not at time of writing.

Online EFTPOS is only available to those customers who are signed up to the five banks currently partnered with Worldline (formerly Paymark), which offers the online EFTPOS service. Those are:

  • ANZ
  • Westpac
  • ASB
  • BNZ
  • The Cooperative Bank

Customers of other banks cannot currently use online EFTPOS.

Additionally, in order to use online EFTPOS, customers who have the right apps will need to go into their app settings and make sure they’ve enabled the option to receive payment requests – a process which is slightly different for every bank.

Can someone use online EFTPOS if they don’t have their bank’s app?

No, online EFTPOS as a system requires the use of the relevant mobile banking app. Customers who don’t have a smartphone or who don’t use their bank’s app will need to use alternative payment options like credit/debit card, POLi or Buy Now/Pay Later.

Is there a spending limit on online EFTPOS?

Yes. Like the use of a regular EFTPOS card, there are daily spending limits applied to online EFTPOS transactions.

The specific limit varies from bank to bank based on the transaction limits applied to a customer’s bank account type.

Is online EFTPOS safe?

Online EFTPOS is regarded as a safe online payment option. Because it uses a bank’s own app to approve the payment, it is well protected by the bank’s own security.

Should my business offer online EFTPOS?

There are so many online payment options available in New Zealand, it can be tricky to figure out whether you should bother with newer ones or not.

Generally, it’s considered good practice to offer at least a small variety of options to your online customers. That would generally consist of at least one credit/debit card option and one or two alternatives. That way, whether a customer has a credit card or not, they can still pay your business.

There’s no right or wrong answer as to whether or not your business should use online EFTPOS specifically. It’s growing in popularity, but with only a limited range of banks on offer it doesn’t quite reach the same number of users as alternatives. It’s best to do your research, talk to your customers about what they’d like to see, and take it from there.

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