Two hundred merchants are trialling an online contactless payment method in store, using just mobile phones and no EFTPOS terminal.

The technology – devised by Paymark – has been designed in response to Covid-19, allowing customers to purchase items without having to physically touch the terminal.

The transaction uses the existing “Online EFTPOS”, which many retailers use for internet purchases, and applies it in-store.

When customers go to the checkout, the retailer uses their own website to conclude the transaction.

The customer then logs into their own mobile banking app and approves the transaction – not even requiring a credit card.

Paymark chief executive Maxine Elliot said retailers were having to explore alternatives to the traditional shopping model during the lockdown.

“There’s no need to use credit cards, customers can buy products using their own money direct from their own bank accounts,” she said.

“That’s great if you don’t have a credit card or if you want to pay from your home, and just drop in and pick up the product.”

The technology has been described as “virtual in-store shopping”, said Simon Tong, ASB’s executive general manage of digital, data and brand.

“ASB was an early adopter of Online EFTPOS and we are really pleased that Paymark is ‘reinventing’ this payment innovation to support New Zealand retailers providing essential services,” Tong said.

“Online EFTPOS has always been a safe way to pay online but now it’s a safe way to shop in store. It’s a win-win.”

This article was originally published on RNZ and re-published with permission.

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