NPP, BPAY and eftpos merger advances to study phase

Australia’s three payments infrastructure providers look set to be merged in some way after the banks deemed the country would benefit from a single industry-wide payments platform.

After months of consultations with stakeholders, NPP Australia Board on Thursday resolved to create an industry committee to study the consolidation of BPAY, eftpos and NPP Australia.

“There is merit in exploring potential consolidation of BPAY, eftpos and NPP Australia into a single entity under the current ownership,” NPP Australia chair Bob McKinnon said.

The board said such an entity “might advance the public interest, and be in the interest of all stakeholders”, particularly given the acceleration of digital payments during COVID-19.

It also pointed to the ability for better “targeted investment, resilience systems, and reduced complexity” under a single entity structure.

“The NPP Australia Board has consulted a number of its shareholders, who are also shareholders in BPAY and eftpos, along with other stakeholders and it is clear from this process that there is appetite to explore the potential case for consolidation,” McKinnon said

Calls for the once-in-a-generation consolidation of the three providers were raised as part of the Reserve Bank of Australia’s review of payment regulation earlier this year.

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Source: NPP, BPAY and eftpos merger advances to study phase – Strategy – Finance – iTnews