Centricom submission to ACCC opposes eBay’s PayPal plan

Centricom, the developer of the POLi online debit payment service, has responded to the ACCC’s request for submissions regarding eBay’s plans to restrict the electronic payment choice of Australian users to just eBay-owned PayPal.

“We oppose eBay’s plans” says Simon Warner, CEO of Centricom. “It will severely limit competition, choice and innovation in the online payment space. Not only does it bar existing and potential competitors to PayPal in the sizeable eBay market, it will also stifle competition in the broader market by unfairly strengthening PayPal’s position with merchants who also operate outside eBay to the detriment of competitors and consumers.”

Simon Warner also challenged eBay’s view that the costs of the proposed conduct will be outweighed by the public benefit due to reduced fraud and increased confidence in payment systems.

“PayPal has not demonstrated that other electronic payments systems aren’t trusted or do not have similar safeguards. For instance, direct deposit by internet banking uses a user ID and password and is no less secure than PayPal. And PayPal is not alone in restricting access to credit card or account details. The POLi payment system does not require the buyer to disclose any account or credit card details to make a payment.”

Centricom believes eBay’s proposal is contrary to policy makers’ desire for more choice for the consumer.

“The Reserve Bank of Australia has a stated policy of increasing competition and has specifically referred to online direct debit payment methodologies, such as POLi, as examples of the sort of alternative payment options desirable in the Australian context” said Warner.

At present, PayPal is only one method of payment offered on eBay. Other methods include credit card payment, bank cheque, personal cheque, cash, and direct bank deposit.

“In a truly open marketplace, other payment methodologies such as the POLi service should also be available” said Warner. “The true determinant of whether or not the marketplace considers PayPal’s services and safeguards to be sufficiently valuable is whether or not buyers and sellers and buyers choose to use PayPal as a payment methodology.”

A copy of the submission can be found at http://www.centricom.com/documents/CentricomsubmissionNoticeN93365.pdf

Centricom Pty Ltd and an international e-commerce company, MOL AccessPortal (MOL), announced today that they have signed a deal enabling MOL to accept the POLi payment system on the MOL Global portal, www.mol.com as an alternative payment option particularly for MOL’s Australian online gaming customers.

MOL is continuously expanding its distribution networks for MOLePoints, an online micropayment system for contents and services with over 100,000 physical and virtual payment channels across 63 countries worldwide. MOLePoints enables consumers to perform online transactions without credit cards and provides a whole new experience of purchasing products and services online. MOLePoints is also the payment system for MOL’s GamesHive portal that has a suite of over 80 Massively Multiplayer Online Role Playing Games (MMORPG) available through www.gameshive.com.

Among the games offered with large followings are Perfect World, World of KungFu, Water Margin Online, Mo Siang, Granado Espada, Risk Your Life and many more!

Ganesh Kumar Bangah, Chief Executive Officer of MOL said, “The Global market is a huge and an untapped market for MOL. A research by DFC Intelligence expects the global online games market to be worth USD13 Billion by 2011. We realize that there is a good growth potential in this market and we believe that the launch of MOLePoints with POLi will not only allow us to tap a significant percentage of this market, but will also grow the online gaming industry and our other products and services globally. We are also confident that our market share will increase substantially with the synergy of this tie-up.”

“Enabling POLi to top up MOLePoints will be especially attractive to the large young Asian population in Australia, who are looking to play games that reflect their cultural tastes,” said Simon Warner, Managing Director of POLi. “They will find POLi is like having eftpos online. It’s a convenient extension of a person’s internet banking facility.”

POLi is a safe and smart method of payment. Most of the six million internet bank account holders in Australia can use the POLi payment option when they see the distinctive black, blue and white POLi logo on a website, without undertaking any registration process.

The process for transferring funds to purchase MOLePoints is straight-forward. The MOL Member who chooses the POLi payment option to buy MOLePoints is transferred to the security and privacy of his own bank’s internet banking system. Once the customer has instructed his bank to transfer funds to their MOL account, he and MOL receive an instant payment confirmation and the funds are transferred.

POLi is safe as neither MOL nor POLi receive any of the customer’s private bank details; it is a secure transaction only between the customer and their bank’s Internet site.

The TSB Bank has integrated the POLi payment service into the heart of its internet banking software.

Now TSB Bank customers who use POLi to pay at a merchant’s site will be taken to a POLi-branded Pay Anyone page within the TSB Bank HomeBank website as opposed to a generic Pay Anyone page for other banks.

Simon Warner, CEO of Centricom, the operator of POLi, says the enhancement is a significant milestone for the company. “Whilst POLi can be used with most NZ banks already, this dedicated TSB Bank Pay Anyone page shows an active endorsement by the TSB Bank.”

POLi is an alternative to using a credit card to shop online. As such, it provides a real choice to consumers who do not have a credit card or are uncomfortable using it online.

POLi enables consumers to use their own internet bank account to make payment.

Charles Duke, Manager, Technical Services, TSB Bank, identified this as a key attraction of POLi. “We like that our customers can be assured they will get all the security they would expect from TSB Bank Internet banking, and that their private financial details will be kept safe. By not providing their credit card details over the internet, it will significantly reduce the opportunity for fraud.”

The process for shopping with POLi is straight-forward. At the point of purchase, the customer chooses the POLi option at a participating merchant’s website. The customer chooses TSB Bank from a list of banks and their standard internet banking site will come up in a new window. They then simply log into HomeBank as they normally do and a POLI-branded ‘Pay Anyone’ page shows the merchant’s bank details and the amount payable. Finally, the customer clicks to confirm and the bank session is closed and the purchase is confirmed with a printable receipt available at the merchant’s website.

POLi is safe as neither the merchant nor POLi receive any of the customer’s private TSB Bank account details; it is a secure transaction only between the customer and the TSB Bank HomeBank Internet site.

POLi became available on the website of Land Transport New Zealand, the vehicle registration and licensing body, from the 29th March.

Simon Warner advised that the reach of POLi will grow quickly. “POLi is up against very established brands in online payments. But consumers want choice, and merchants and innovative parties like TSB Bank recognise this. Expect to see a number of new merchants come on board in the coming months.”

POLi launched in the UK to increase access to online payment choice and reduce card-not-present fraud

Centricom Pty Ltd the Australian based operators of POLi, has established a joint venture, Centricom Europe Limited, with the NETELLER Group (LSE: NLR), the independent global online payments business, to distribute the POLi service in Europe. Under the joint venture, the POLi payment service will be distributed through NETELLER’s payment processing arm, NETBANX.

In August 2007 Centricom announced that the UK based NETELLER Group had taken a 25% strategic stake in Centricom Pty Ltd. The European joint venture is a 50/50 joint venture between both parties.

The POLi service is a safe and convenient method to make online payments. Through the POLi service, consumers can make payments to merchants anywhere in the world directly from their existing Internet banking service without disclosing their bank or credit card details. According to reporting merchants in Australia who have implemented POLi, the service now accounts for an average of 23% of their total online payment transactions. The new UK service supports transfers from all major UK high street banks.

According to UK payment industry trade body APACS, in 2006, the most recent year surveyed, the average card transaction cost to merchants was GBP1.69, 15% of adults in the UK did not have access to cards for payment, and card-not-present (online) fraud increased by 16% to GBP212 million.

The POLi service helps solve these key problems: it allows people without cards to pay online and pay from their trusted internet banking service, and it significantly reduces fraud and repudiation risk for merchants, compared with other on-line payment types such credit and debit cards. And it enjoys high consumer confidence as no user information is captured or stored by the service.

Simon Warner, Chief Executive Officer & Executive Director of Centricom and Centricom Europe, said “The NETELLER Group relationship gives POLi a strong foothold in the European market. Whilst online purchases are becoming more convenient, many consumers are still wary about using their cards over the Internet because of fraud and identity theft. The POLi service overcomes these barriers.”

Ron Martin, President & Chief Executive Officer of NETELLER, said “We continue to be very pleased with our ongoing relationship with Centricom. We believe the POLi service offers significant benefits to merchants who sell products and services online. This increased investment is part of our commitment to delivering the best total online payments solution suite for merchants.”

POLi in UK is operated by Centricom Europe Limited, and is distributed to merchants through the NETELLER Group’s payment arm, NETBANX. More information can be found at www.netbanx.com.

Australian online sports betting companies, Sports Acumen and Global Sportsbet, have launched POLi via their respective web sites.

Sports Acumen offers a comprehensive range of Fixed Odds and Spread Betting markets on the most popular events from around the world, both Sport and Racing. Global Sportsbet is renowned as one of Australia’s best sports bookmakers.

Rob Gallagher, general manager, Sports Acumen, said that the decision to implement POLi was pretty clear cut. "We aim to provide our customers with choice, and POLi fills a key piece of the online payments jigsaw. POLi allows our customers to make top ups directly from their internet banking accounts without any registration process. Anyone with an internet banking account can top up their Sports Acumen account instantly."

Global Sportsbet’s head of customer service, Tom Stillman, stated “the instantaneous nature of the POLi payment solution gives our customers more options, particularly those who do not have credit cards or do not like using them over the net.”

“Sports Acumen customers will be attracted to POLi as they will have the ability to transfer funds safely from their existing bank account” said Simon Warner, managing director of POLi. “Punters will find POLi very convenient and straight forward if they are regular internet banking customers”.

POLi is a safe and smart method of payment. Most of the six million internet bank account holders in Australia can use the POLi payment option when they see the distinctive black, blue and white POLi logo on a website, without undertaking any registration process.

POLi is safe as neither the merchant (Sports Acumen or Global SportsBet) nor POLi receive any of the customer’s private bank details; it is a secure transaction only between the customer and their bank’s Internet site.

A new website, Startnextweek.com.au, has added POLi to its online payment options, assisting their offering of last-minute bookings for standby course placements.

Startnextweek.com.au brings together, in one central location, an array of training providers willing to sell their last few remaining seats at great rates. No other website offers such a diverse range of training subjects, all for sale last minute. It features discounted training and self-improvement courses including Microsoft Office Essentials, MYOB and First Aid.

Startnextweek.com.au is the only training website in Australia that allows you to browse, book and pay online. Information on pricing and the number of seats available are all live online so the decision can be made immediately without having to wait for someone to contact you. Their aim is to place customers on high-quality training courses at affordable prices.

Co-founders George Galanos and Richard Brook have thirty years experience in the training market as facilitators, instructors and managers.

“Critical to the construction of Startnextweek.com.au was the importance for the user to find their required course in the least amount of clicks. Equally important is simplicity and choice in the check-out process” says George.

Simon Warner, managing director of Centricom, says “POLi is an extension of a person’s internet banking facility, using all the security measures that come with online banking. POLi is like having EFTPOS online. Payments are instantly transferred to Startnextweek.com.au.”

The process for payment is straight-forward. At the point of purchase, the customer chooses the POLi option on the Startnextweek.com.au website and their standard internet banking site will come up in a new window. They then simply login as they normally do and a ‘Pay Anyone’ page shows Startnextweek.com.au’s bank details and the amount payable. Finally, the customer clicks to confirm and the bank session is closed and the purchase is confirmed with a printable receipt available on Startnextweek.com.au.

POLi is safe as neither Startnextweek.com.au nor POLi receive any of the customer’s private bank details; it is a secure transaction only between the customer and their bank’s Internet site. POLi uses secure server technology to ensure it is always available with no drop outs mid-transaction.

Merchants who look beyond credit cards see ‘significant’ growth.

The lost opportunities from the lack of an online EFTPOS option is a drawback that many Australian online merchants only discover after investing large sums developing and marketing their websites trying to drive customers to their door.

Many online merchants initially fail to understand that the revenue they can generate is in part dependant upon the payment types that they offer to their customers, and their willingness to use them. For example, by only offering a credit card option on their website, merchants automatically exclude the millions of people who don’t have, or won’t use their credit card online.

According to Simon Warner, managing director of Centricom, roughly 50% of traditional retail (non online) electronic transactions go through EFTPOS. “It would be fool-hardy for any retailer to only offer credit card payments and thereby exclude customers who prefer to pay via EFTPOS.”

In the online world the absence of an EFTPOS-type payment solution means that a cap has effectively been placed on the potential growth of eCommerce. According to eMarketer, around 6 million Australian shoppers spent $11.3 billion online in 2005 – 06. With credit cards making up the bulk of these transactions, and the rest made up of debit cards and virtual payment types (i.e. wallets), the missing piece of the online payments equation is a debit solution that fills the role of EFTPOS online.

This is where POLi fits in. POLi is an online payment service that allows consumers to shop online from the safety of their personal Internet banking facility. POLi enables them to use their debit accounts (savings or cheque) to make payments directly into the merchant’s bank account and receive an instant receipt of the completed transaction – a similar role of EFTPOS in the traditional retail world.

Mr Warner reports significant growth for merchants using POLi. “The merchants who have implemented POLi are enjoying significant growth in new business over and above their normal revenues. According to reporting merchants, they are seeing significant growth in additional business since implementing POLi. This is on top of existing credit card business and with little cannibalization.”

Hot tip: use your bank account for an online flutter

The Melbourne Cup may be the race that stops the nation, but there’s no need for studs and fillies to stop off at the busy bookies nor max out their credit card online.

“The credit card is yesterday’s accessory. Ruins your budget and doesn’t match your handbag or tie. The smart money is your own money.” says Simon Warner, managing director of Centricom. “Punters can use POLi at a number of online betting shops. It lets them use their own funds, rather than the credit card which is great for those without a credit card of who don’t like to use it.”

Studying the form and pre-placing your bets online takes the stress out of a day’s racing for those at home or off to the track. “Let’s be honest, queuing at the bookies for ten minutes before each race gets in the way of the real fun, and there’s a danger of impaired judgement later in the day!”

“Most importantly, you are only betting with money you have and not racking up debt on your credit card,” said Warner.

The form on POLi

POLi is a safe and smart method of payment. Most of the six million internet bank account holders in Australia can use the POLi payment option when they see the distinctive black, blue and white POLi logo on a website, without undertaking any registration process.

The process for transferring funds to your betting site is straight-forward. The betting site customer who chooses the POLi payment option to top up their account is transferred to the security and privacy of her own bank’s internet banking system. Once the customer has instructed her bank to transfer funds to their betting site account, she and the betting site receive a conventional payment confirmation, and the funds are transferred.

POLi is safe as neither the betting site nor POLi receive any of the customer’s private bank details; it is a secure transaction only between the customer and their bank’s Internet site.

Nearly six million Australians can use POLi; a safe online payment alternative

Sportsbet, the online betting site, has incorporated POLi into its service, enabling Australians to instantaneously top up their Sportsbet account from their internet bank account.

Sportsbet has operated in Australia for more than 14 years and is licensed in the Northern Territory by the Northern Territory Racing Commission (NTRC).

Matthew Tripp, chief executive of Sportsbet commended the convenience of POLi. “Our punters will value not having to wait several hours or days to transfer funds into their Sportsbet account.”

“POLi is like having eftpos online” said Simon Warner, managing director of POLi. “It’s a convenient extension of a person’s internet banking facility, so it’s using all the security measures in place that come with online banking”.

POLi is a safe and smart method of payment. Most of the six million internet bank account holders in Australia can use the POLi payment option when they see the distinctive black, blue and white POLi logo on a website, without undertaking any registration process.

The process for transferring funds to a Sportsbet account is straight-forward. The Sportsbet customer who chooses the POLi payment option to top up their account is transferred to the security and privacy of his own bank’s internet banking system. Once the customer has instructed his bank to transfer funds to their Sportsbet account, he and Sportsbet receive a conventional payment confirmation, and the funds are transferred.

POLi is safe as neither Sportsbet nor POLi receive any of the customer’s private bank details; it is a secure transaction only between the customer and their bank’s Internet site.

NETELLER Plc (LSE: NLR), the independent global online payments business, announces that it has recently completed the acquisition of a strategic stake in Centricom Pty Limited (“Centricom”). The key points of the investment are:

- Centricom operates the POLi™ payment platform in Australia and New Zealand.

- NETELLER will pay a total of AUD$ 5 million (approximately US$ 4 million) for a significant equity position in Centricom.

- Extends NETELLER’s expertise as a payments hub for its merchants initially in the Asia Pacific region.

Centricom Pty Limited is an Australian company based in Melbourne that provides a range of web-based transaction services, including online payments, straight-through processing, reconciliation and advanced transaction integration solutions.

NETELLER has agreed to invest a sum of AUD $5 million in consideration of a minority stake holding in Centricom, on a fully diluted basis. As part of the investment, NETELLER will appoint one director to the Centricom board.

Through an existing partnership, NETELLER introduced the POLi™ service to its Australian customers in January 2007 as a safe and convenient method of payment direct from their bank accounts. The POLi™ system allows customers to make payments online, from their existing internet banking service, without disclosing their bank or credit card details to the merchant.

Centricom is backed by a strong financial partner in Melbourne-based Jagen group (“Jagen”). Jagen is an international investment group with interests across a broad range of industries in the United States, Europe and the Asia Pacific region. Jagen will continue to own the majority shareholding in Centricom following the NETELLER investment, along with Centricom’s directors and employees.

This investment furthers the NETELLER Group’s presence in the important and expanding Asia Pacific online payment market.

Ron Martin, President & Chief Executive Officer of NETELLER, said “We are pleased to cement our existing relationship with Centricom through this investment. We look forward to working with Centricom to drive the business through its next phase of growth. NETELLER will continue to seek out strategic relationships with companies such as Centricom who offer compelling products and services that enhance our innovative online payment solutions to our global customers and merchants.”

Simon Warner, Managing Director of Centricom, said “We welcome the investment from NETELLER as a milestone in our development which will enable us to roll out the POLi™ service to more merchants and build further consumer brand awareness. This partnership is further evidence that Centricom is serious about being the major provider of online payments in Australia, New Zealand and beyond.”

About the NETELLER Group

Trusted by customers and merchants in over 160 countries to move and manage billions of dollars each year, the NETELLER Group operates the world's leading independent online payments business. The Group specialises in providing innovative and instant payment services where money transfer is difficult or risky due to identity, trust, currency exchange or distance. Being independent has allowed the Group to support thousands of retailers and merchants in many geographies and across multiple industries.

NETELLER Plc is quoted on the London Stock Exchange's AIM market, with a ticker symbol of NLR. NETELLER (UK) Limited is authorised and regulated by the Financial Services Authority (FSA) to operate as a regulated e-money issuer. For more information about the Group visit www.netellergroup.com.

Centricom has awarded the contract for hosting POLi™, its online payment system, including mission-critical transaction applications and data, to Macquarie Hosting, a division of Macquarie Telecom.

Following a thorough analysis of hosting providers, Macquarie Hosting was selected for its proven experience with 100 per cent web-facing companies and its ability to provide 24/7, secure availability of mission critical applications.

POLi will be hosted at Macquarie Hosting’s ISO and DSD Gateway certified data centre, the Intellicentre, in Sydney alongside sites for Federal and State government, national security agencies and major blue-chip businesses.

The flexibility and agility afforded to Centricom to cope with unpredictable peaks in consumer demand that are inherent in the online payment industry were key in the decision to partner with Macquarie Hosting. The ability to scale quickly to accommodate predicted growth in the business was also important.

“This deal is the outcome of a review of POLi™’s future needs and its users’ expectations” said Simon Warner, managing director of Centricom. “Merchants and consumers quite rightly demand that an online payment system be hosted in the most secure of ways. And with the growth we expect from POLi™, we will need ever greater flexibility, agility and scalability.”

Macquarie Hosting is the first telecommunications carrier and hosting provider to be certified to International Security Management Standard, ISO 27001 which provides a level of assurance that hosted databases, networks and operating systems meet global best-practice standards for risk assessment, policy, training, audits, controls, information and communication.

Aidan Tudehope, Managing Director, Hosting for Macquarie Telecom said: “For high-transaction websites such as POLi™ that deal with confidential customer information and hundreds of requests daily, security is critical.”

“By hosting with a local provider such as Macquarie Hosting, Centricom can be confident that all our solutions – from security through to network access – meet best-practice requirements for both local and international organisations.”

Commenting on the future of POLi™, Mr Warner said “The new hosting arrangement is further evidence that Centricom is serious about being the major provider of online payments in Australia, New Zealand and beyond.”

POLi™ is a safe and smart method of payment. Most of the six million internet bank account holders in Australia can use the POLi™ payment option when they see the distinctive black, blue and white POLi logo on a website, without undertaking any registration process.

Using POLi™ to purchase online is simple. To make a purchase customers choose the POLi™ option at a merchant site and their standard internet banking site will come up in a new window. They then simply login as they normally do and a ‘Pay Anyone’ page shows the merchant’s bank details and the amount payable. Finally, the customer clicks to confirm and the bank session is closed and the purchase is confirmed with a printable receipt available on the merchant’s site. The customer’s purchase is finalised in real-time just like if they had used a card.

POLi™ is safe as neither the merchant nor POLi™ receive any of the customer’s private bank details; it is a secure transaction only between the customer and their bank’s