Banks join Bartercard in electronic trade deal

Stan Beer
Wednesday, 07 December 2005 17:08

IT Industry - Deals

Bartercard transactions will now be avialable electronically, using the EFTPOS and XPOS facilities of four of Australia’s major banks.

The Bartercard electronic terminal initiative will see Bartercard Australia go live with a point of sale system via the existing electronic networks of the four banks – The Commonwealth Bank of Australia, National Australia Bank, St George and Westpac Bank. The system is already live with the Commonwealth Bank of Australia and National Australia Bank, with St George and Westpac Banking coming on-line in February 2006. Noticeably absent from the deal is ANZ.

As well as a significant breakthrough for Bartercard, the arrangement also represents the first time four of Australia’s major banks have joined forces on an initiative of this nature.

Bartercard, which has 25,000 members in Australia, facilitates a cashless exchange of goods and services between its members, using a currency known as Trade Dollars.

According to Jason Van, chief information officer at Bartercard, the new arrangement struck with the banks is one of the most crucial ever secured in the history of the Trade Exchange.

“The branding and alliance with the four banks will provide Bartercard with brand credibility, new membership avenues, greater company enquiries, and, therefore, increased revenue,” Mr Van said. “We have completed the plans for links between the banks and Bartercard, which will be ready in most cases for conversion this month.

“Programming not completed by the end of this year will certainly be completed during the first quarter of 2006. The four banks have agreed to work closely with the Bartercard, to ensure a smooth and efficient service provided to all Bartercard Members who choose to use an electronic transaction system.

“Bartercard continues to make significant in-roads into the marketplace, and with thousands of member business across Australia, it made sense to the banks to work together in maximising their customer base. The sheer size of Bartercard’s Australian membership base was very appealing to the banks, especially as thousands of Bartercard clients already possess EFTPOS and XPOS terminals from one of the four banks.”

“For the banks, the new deal delivers the benefit of retaining their existing terminal user customers, as well as enticing potential new users.”