Transcription of Finance News Network Interview with Integrated Payment Technologies Limited (ASX:IPI) CEO, Robin Beauchamp.
Jessica Amir: Hello I’m Jessica Amir for the Finance News Network and joining me for an update from payment solution provider, Integrated Payment Technologies Limited (ASX:IPI) is CEO, Robin Beauchamp. Robin, welcome back.
Robin Beauchamp: Thank you Jessica.
Jessica Amir: InPayTech provides a range of solutions to make payments faster and more secure. Can you tell us about the product history?
Robin Beauchamp: We formed the company to commercialise the payment adviser patent. The patent is concerned with the movement of data, with money. And so we looked for a case study, an example that would show off the benefits of the patent, as well as we could. And we settled on the superannuation industry, as a perfect target for this kind of solution. Fundamentally, there were 4,000 superannuation products that were being paid into, by 800,000 Australian employers. It’s a lot of data to move, it’s a lot of froms and tos and that was exactly the kind of problem that we were looking to solve.
Having built the company, we then extended the product range from superannuation contributions, to look after salary payments, tax payments, the normal salary deductions that people have. And then created the company payment adviser itself to handle all transaction types, other than those salary deduction types. The latest product that we produced, is called PayVu. And PayVu is a very exciting and interesting product, because it combines the functionality of those two existing products and then interfaces them, to accounting systems and Internet banking. And that provides a complete pallet of solutions for business-to-business payments.
Jessica Amir: Thanks Robin. Can you give us just a little more detail on those payment solutions?
Robin Beauchamp: In ClickSuper, we continue to add a considerable number of employers every month. But we expect an earnings uplift in the second half of the financial year, next year; a single touch payroll is introduced. The 20 plus employers need to take a single touch payroll on, it’s a legislated item and so that should affect our income for that year.
Turning to PayVu, this is a product that dramatically reduces the time that it takes to make business payments. We’re talking about reducing from hours to minutes. The product comes in two different flavours, standard and premium. The standard product relies upon the business owner or their bookkeeper, to upload a file to their internet banking session. The premium version automates the process completely, which really opens up the vista for automation in payments for everybody. What it means is that you can now run all of your business payments from your mobile phone, at anytime that you wish.
Jessica Amir: So, payroll processing has been in the news a lot lately and in particular, the Plutus fraud allegations. Do your products help prevent fraud?
Robin Beauchamp: Yes they do. One of the key elements of fraud is risk management. There are three steps to managing risk in a business. The first one is of course; to identify and to isolate those risk areas. Secondly, you need to wrap them in a security procedure, so that you know of every entry and exit from that environment. And thirdly, you make sure that every transaction is authorised by a trusted party. That combination helps to eliminate fraud in a business.
What we’ve done with PayVu is to build that type of integration into the foundations of the product itself. In the end, it was quite simple. We used the security that surrounds both the accounting system and the banking system, to form an interlaced network of security over the payment. And when that payment is then authorised by somebody, with the correct authorisation to release the payment - no fraud.
Jessica Amir: So Robin, in your last interview you spoke about the end of superannuation clearinghouses. Is that still your view?
Robin Beauchamp: Yes it is. The superannuation clearing houses currently take three days to settle money. The Reserve Bank’s new payment platform, which is introduced at the end of this year, will reduce normal settlement times to one day. But the clearing houses business model is based upon three days. PayVu is built upon same day settlement. That means, that when you pay the money, that’s when your payee receives those funds.
In addition to that, PayVu not only integrates with the payers accounting system, but with the payees accounting system too. It will integrate the data directly upon receipt of the payment, into the accounting system. And not only that, provides you with the ability to see the remittance advise data inside your internet banking system. That’s a first.
Jessica Amir: So, last question Robin. Where do you see InPayTech 12 months from now?
Robin Beauchamp: That’s an easy question to answer. We have patents throughout Asia and applications pending in other countries around the world. Our intention is to take PayVu global. So in 12 months time, we would expect to have our product firmly bedded down and used right across Australia. And then branching out overseas and doing exactly the same thing there.
Jessica Amir: Well that sounds really exciting. Thank you so much for the update, Robin Beauchamp.
Robin Beauchamp: Thank you Jessica.