Imagine stepping back in time to 1984 in New Zealand. The concept of not using coins and notes for purchases was unheard of. Cash transactions were the norm, with employees receiving their pay in brown envelopes, and cheques were widely accepted.
The idea of electronic payment technology generated mixed feelings. Some embraced the thought of securely carrying money without a bulky wallet, while others feared the loss of privacy, worrying about 'big brother' recording every transaction.
The introduction of EFTPOS (Electronic Funds Transfer at Point of Sale) in 1985 at Shell stations marked a significant shift. New Zealanders quickly adopted this technology, surprising them when they travelled abroad to find other countries lagging in EFTPOS capabilities.
By 1989, realising the expense of each transaction on banks, the four major banks formed Electronic Transaction Services Limited (ETSL), later rebranded as Paymark, and now known as Worldline, to prevent the withdrawal of BNZ from EFTPOS. Today, 33 years later, swiping, tapping, and inserting plastic cards have become second nature, with the added convenience of using devices like Apple Watches or cell phones.
EFTPOS, which stands for electronic funds transfer at the point of sale, initially started with the Bank of New Zealand issuing debit cards. Initially, only petrol stations had the necessary terminals. Over the years, the number of merchants using EFTPOS in New Zealand has grown to over 85,000, with a constant increase observed.
Worldline, processing 70% of New Zealand's payment transactions, and Verifone, play a crucial role in maintaining the security and privacy of each transaction. Their encryption ensures accuracy and speed, with Worldline alone processing 2 billion transactions annually.
In the business realm, transparent and real-time access to transaction details has become vital. Worldline and Verifone offer reporting portals, constantly innovating payment platforms.
Despite the growth in EFTPOS transactions, challenges exist. Merchant fees in New Zealand are higher than in most other countries, leading to the enforcement of the Retail Payment System Act 2022. New businesses navigating EFTPOS technology should prioritize understanding the terminal's functionality, adhering to software upgrades, and protecting the terminal. Eftpos Now, a Worldline accredited reseller, emphasizes the importance of reliable traditional terminals over lower rental rates.
Automation advances, and EFTPOS terminals serve as a gateway to new payment processing options, contributing to the success of businesses. As FinTech gains prominence, with 'open banking' recently adopted in New Zealand, there's a possibility that the country could once again lead in international banking innovations, just as it did with EFTPOS in 1989.
