1
00:00:00,040 --> 00:00:03,280
Speaker 1: Good afternoon. The government's credit card surcharge band might have

2
00:00:03,560 --> 00:00:06,080
Speaker 1: just been given a last minute replete reprieve. It was

3
00:00:06,320 --> 00:00:09,040
Speaker 1: declared dead this morning because ACT had pulled support for it,

4
00:00:09,080 --> 00:00:11,039
Speaker 1: but now Labor has said it might yet support it.

5
00:00:11,039 --> 00:00:13,480
Speaker 1: It sounds like only if the banks absorb the fees.

6
00:00:13,560 --> 00:00:15,760
Speaker 1: Carolyn Young is the CEO of Retailing Z and with

7
00:00:15,800 --> 00:00:19,520
Speaker 1: us Hi Carolyn Kyota. Would that work? Can the banks

8
00:00:19,560 --> 00:00:21,080
Speaker 1: be forced to absorb the fees?

9
00:00:22,600 --> 00:00:25,799
Speaker 2: Thing's unlikely that that's going to happen, But look, that

10
00:00:25,800 --> 00:00:27,960
Speaker 2: would be a good outcome for everyone if that was possible,

11
00:00:27,960 --> 00:00:30,960
Speaker 2: wouldn't it Because from a consumer and a merchant perspective,

12
00:00:31,000 --> 00:00:33,960
Speaker 2: they wouldn't be having to bear those increased costs for

13
00:00:34,040 --> 00:00:38,680
Speaker 2: the hire of technology that's been introduced through contacts payments.

14
00:00:39,040 --> 00:00:40,440
Speaker 1: Why is it unlikely to happen?

15
00:00:42,560 --> 00:00:44,599
Speaker 2: Well, because you know, if you talk to any bank,

16
00:00:44,640 --> 00:00:46,000
Speaker 2: they're going to sit down and say to you that

17
00:00:46,120 --> 00:00:48,680
Speaker 2: to develop and the credit card companies they're going to

18
00:00:48,720 --> 00:00:52,720
Speaker 2: say to you that to develop safer, more technologically friendly

19
00:00:53,120 --> 00:00:57,760
Speaker 2: solutions for people to make payments, it takes investment and

20
00:00:58,000 --> 00:01:00,920
Speaker 2: funding to be able to do that. So, for example,

21
00:01:00,920 --> 00:01:03,600
Speaker 2: part of the reason why FPOs has been declining in

22
00:01:03,680 --> 00:01:07,760
Speaker 2: terms of the volume that goes through those rails is

23
00:01:07,800 --> 00:01:11,680
Speaker 2: because it's a very static program that nothing's changed in

24
00:01:11,720 --> 00:01:14,800
Speaker 2: thirty years, or virtually nothing has changed in thirty years,

25
00:01:15,480 --> 00:01:18,280
Speaker 2: so it feels and looks the same to everyone. And

26
00:01:18,640 --> 00:01:20,640
Speaker 2: there's been no investment from the banks because there's no

27
00:01:20,680 --> 00:01:24,279
Speaker 2: revenue from them generated in that space. Whereas in terms

28
00:01:24,280 --> 00:01:26,720
Speaker 2: of when you look at contact with payments, being able

29
00:01:26,760 --> 00:01:29,560
Speaker 2: to play through a wallet or through tap and go

30
00:01:30,240 --> 00:01:33,360
Speaker 2: or you know, insit, whichever way you want to pay,

31
00:01:33,760 --> 00:01:39,119
Speaker 2: all of those different methods come through with technology and investment,

32
00:01:39,280 --> 00:01:42,600
Speaker 2: and therefore there's significant fees that have been attached to them.

33
00:01:42,920 --> 00:01:46,759
Speaker 2: And of course a lot of that escalation and use

34
00:01:47,280 --> 00:01:51,720
Speaker 2: happened through and close COVID, where we were concerned about,

35
00:01:51,720 --> 00:01:55,160
Speaker 2: you know, contacting people and touching things and all of

36
00:01:55,160 --> 00:01:58,200
Speaker 2: those sorts of areas. So there was a great escalation

37
00:01:58,520 --> 00:02:01,480
Speaker 2: in the use at that time. And now you see,

38
00:02:02,200 --> 00:02:04,840
Speaker 2: you know, ten years ago, forty five percent of transactions

39
00:02:04,880 --> 00:02:08,000
Speaker 2: were done via credit, and now you know ten years later,

40
00:02:08,120 --> 00:02:11,560
Speaker 2: twenty one, sorry, seventy one percent of transactions go through

41
00:02:11,639 --> 00:02:15,840
Speaker 2: either through a wallet, through contactless, or through credit, and

42
00:02:15,880 --> 00:02:18,880
Speaker 2: so that's a big portion that's got a significant fee

43
00:02:18,919 --> 00:02:21,800
Speaker 2: and that's the big change in what retailers have experienced

44
00:02:21,800 --> 00:02:24,280
Speaker 2: in terms of the fees that they're paying paying back

45
00:02:24,320 --> 00:02:26,000
Speaker 2: through to the banks and credit card companies.

46
00:02:26,120 --> 00:02:27,960
Speaker 1: Does it worry you that labours come to the rescue

47
00:02:27,960 --> 00:02:29,200
Speaker 1: here potentially.

48
00:02:30,080 --> 00:02:31,960
Speaker 2: Look if they if they can get the banks trips

49
00:02:32,000 --> 00:02:35,000
Speaker 2: or the feed, that will be a great outcome. We're

50
00:02:35,120 --> 00:02:37,600
Speaker 2: absolutely one hundred talk that the retailers of.

51
00:02:37,600 --> 00:02:40,079
Speaker 1: The COT given that you don't think that it's possible.

52
00:02:40,320 --> 00:02:42,440
Speaker 1: They may have just doesn't rescue to force a thing

53
00:02:42,520 --> 00:02:45,200
Speaker 1: through that actors just effectively killed off and thank God

54
00:02:45,240 --> 00:02:47,399
Speaker 1: for that. But they may in fact revive a bad thing.

55
00:02:48,680 --> 00:02:50,960
Speaker 2: I don't think they will. They won't revive it as

56
00:02:51,000 --> 00:02:55,960
Speaker 2: it is. We've had a couple of conversations with Arianna

57
00:02:56,000 --> 00:02:58,200
Speaker 2: Williams and certainly there was no way that they were

58
00:02:58,200 --> 00:03:01,440
Speaker 2: going to support it as status quo. So we've reached

59
00:03:01,440 --> 00:03:03,200
Speaker 2: out to her today and waiting to speak to her

60
00:03:03,240 --> 00:03:04,839
Speaker 2: further on her suggestions.

61
00:03:04,960 --> 00:03:07,320
Speaker 1: Excellent, Carolyn, Thank you very much. Appreciate it, Carolyn. Then

62
00:03:07,400 --> 00:03:11,520
Speaker 1: retail in z CEO. For more from Heather Duplessy Allen Drive,

63
00:03:11,680 --> 00:03:15,120
Speaker 1: listen live to News Talk ZEDB from four pm weekdays,

64
00:03:15,200 --> 00:03:17,359
Speaker 1: or follow the podcast on iHeartRadio