Westpac Institutional Bank on Tuesday launched a cashless payments system which it claimed has the potential to take around $65 million in cash out of circulation in the first year.
The wholesale financial services provider is using Scotney Group’s Flexischools closed loop online payments system that enables parents to pay for school activities without their children needing to carry cash.
More than 800 schools in Australia and New Zealand are using the portal with Westpac processing more than 10 million transactions to date.
Under the agreement with Scotney, Westpac will maintain its transactional and cash management relationships with customers and use Scotney’s expertise to set up the system and manage the flow of payments.
Westpac said the technology has the potential to take millions in cash out of circulation and digitise payments in other industries.
Mike Baldwin, head of innovation and implementation, global transactional services at Westpac Institutional Bank, said the solution will work particularly well in closed environments such as aged care or universities where funds may be provided to users’ accounts by a third party.
“We have also seen early interest from corporates operating in remote locations like mine site and offshore gas platforms,” said Baldwin.
“Fly in, fly out workers can top up their account online and make purchases at the point of sale using an IDG card or smartphone so there is no need to carry and handle cash.”
Baldwin said the payments system can be accessed using smartphones and tablets.