new kid tsm and bnz payclip, page-45

You raise some interesting points/questions malmanu. Some comments though:

- "Gizmos" v "EFTPOS" v "Mobile EFTPOS". You raise some good points but I think you confuse a few issues:

1. EFTPOS in Aus/NZ is a type of debit card payment. In Aus it is owned by the banks themselves. The cost per transaction should be very low, ~$0.50 per transaction. For a merchant, this is definitely the cheapest route. Yes, MSF for credit cards should be ~ 1.00% in Aus. A lot higher outside of Australia (can't comment on NZ).

2. Mobile EFTPOS terminal - $35 at a minimum. You mention that merchants would pay this for their phone. But they're already paying it. As such, it is sunk cost. No merchant wouldn't have a mobile phone.

3. Low volume v high volume merchants - This type of solution is definitely aimed at the low end of the market. Think 1-5 transactions per month. Let's say they sell $1,000 of goods in a month @ $100 per transaction. Based on your costs, $27 for the "gizmo" v $44 for a mobile EFTPOS machine (I think the costs would be higher for the latter personally).

4. Integration - one thing which this solution will offer is the ability for the merchants to import and reconcile their data. This is a lot bigger than you realise.


- Worldpayzinc - I think merchants prefer the all in one solution. But I don't think this will have a big impact on much. It wouldn't be a huge stretch for Mint to support a bluetooth reader.

- Direct transfer - sure, they can do this now via BPay. I think the big thing that you're missing is that consumers love using credit cards (thanks Frequent Flyer points!). We're addicted to them.

Plus - how on earth is your proposed direct transfer more simple? It is much more complex. Consumers AND merchants want simple.

QR Codes - Haha. Yes, they've been INCREDIBLY successful. Come on, stop smoking weed.

Summary - the biggest thing I think you're overlooking is the back-end infrastructure Mint (and SmartPay) have in place. Connecting to the banks isn't easy and gaining certification more difficult. The front end is the simple bit so they can add bluetooth readers etc, but getting the bank connections in place is costly and takes a lot of time.