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How to Make a Payments Experience Drive Loyalty

Posted on by Rachael Shupe
Lady on the lounge using her tablet and paying for something with her card.

Did you know that, according to a recent report from Xero, 25% of consumers would visit another business if their preferred payment method wasn’t available? These days, payments are more than just transactions – they are make-or-break moments for customer retention.

The importance of consumer-centred payment systems was a key theme at Cuscal’s Curious Thinkers 2024 event. The panel highlighted why businesses must rethink their payment systems to align with consumer expectations and offer seamless, secure, and flexible options.

Below, we explore the shifting landscape of consumer payments, why businesses must prioritise a consumer-centred approach, and steps they can take to enhance the payment experience for their customers.

Meeting Consumer Expectations: The Changing Payments Landscape
Consumers today expect more choice, transparency, and security in their payment interactions. The rise of digital wallets, real-time payments, and buy-now-pay-later (BNPL) solutions reflect this demand.

The report from Xero on how businesses and consumers are making and taking payments found that:

  • 38% of consumers experience frustration when their preferred payment method isn’t available.
  • 26% cite limited payment options as a reason for dissatisfaction.
  • 25% would visit another business that accepts more payment methods.

These statistics underscore the need for businesses to offer diverse, frictionless payment options to meet evolving consumer expectations.

Beyond Transactions: Why Payment Experience Matters
Have you ever abandoned a purchase because the checkout process was too complicated or a payment option you preferred wasn’t available?

Payments are an essential touchpoint in the purchase process that can influence customer satisfaction and brand perception, for better or worse. Whether it’s a quick tap at a café or a major online purchase, a seamless payment experience can foster trust and build loyalty.

The rapid growth of e-commerce has been a major driver of this shift. Take Amazon, for example. Its one-click payment system revolutionised online shopping by eliminating unnecessary steps and reducing checkout friction. Similarly, Apple Pay and Google PayTM have redefined mobile transactions by allowing secure, instant payments with minimal effort.

Consumers accustomed to fast and frictionless online payments expect the same convenience across all channels. For businesses, this means:

  • Delivering on speed and simplicity: Customers expect fast and intuitive transactions.
  • Ensuring security and privacy to build trust: Clear authentication measures without unnecessary hurdles.
  • Offering choice and flexibility: Multiple payment options to cater to different preferences.
  • Managing complexity: Ensuring smooth integration and efficient backend systems while offering more payment options.

How Businesses Can Create Better Payment Experiences
Developing a consumer-centred payment system requires practical steps and thoughtful strategies. Below are recommendations from Cuscal’s Head of Payments & Innovation, Nathan Churchward, on how businesses can create a better payment experience for customers.

Know Your Customers, Meet Their Needs
Businesses must assess their customers’ behaviour and preferences to tailor payment solutions. Different demographics and business types have unique payment needs, so offering a one-size-fits-all solution may not be effective. Local payment providers can offer practical solutions to help businesses choose the best payment options for their customers.

Listening to consumer feedback is also key. Understanding and addressing pain points in the payment journey helps refine strategies, improve the experience, and build trust with customers.

Make Payments Effortless and Secure
A great payment experience should be both effortless and secure. Tokenisation helps by reducing the number of times customers need to enter their card details, making transactions smoother while keeping data safe. Digital wallets like Apple Pay simplify the process even further, allowing for fast, secure payments with a single tap. The best solutions remove friction and enhance security without adding extra steps.

Empower Customers Through Information
Customers feel more confident when they understand how different payment options work and what benefits they offer. Businesses that educate customers on their choices (especially when encouraging a preferred payment method) build trust and transparency.

If using surcharges to guide payment decisions, pairing them with clear explanations ensures customers see the value rather than just the cost. It’s also important to reassure customers about security, especially for prepaid services or payments made in advance, by highlighting measures in place to protect their funds.

Seamless Payments, Streamlined Experience
Payments should work in real-time and integrate seamlessly into business operations. Traditionally, card payments have led the way in integration and instant processing, but newer options like NPP and PayTo are catching up. The challenge has been ensuring these payment types update systems in real-time for smoother reconciliation and automation.

Businesses should seek payment providers that offer real-time payment APIs to maintain efficiency without compromise. PayTo, for example, enhances integration by eliminating the need for customers to manually enter details, allowing businesses to pass transaction data directly to the customer’s bank for easy authorisation. The right payment solutions should support automation, reduce manual processing, and improve the overall payment experience for both businesses and customers.

Prioritising Consumer Needs for Long-Term Success
A truly consumer-centred payment system goes beyond technology. It requires a deep understanding of customer behaviour, a commitment to security, and an effort to educate users. Businesses that align their payment strategies with consumer needs will enhance customer satisfaction and drive loyalty and long-term growth.

By investing in seamless, secure, and flexible payment solutions, businesses can transform payments from a transaction into a competitive advantage.

References
ANZ Subject Matter Experts 2024, ‘The digital payment revolution: what businesses need to know’, ANZ Insights website, article, 6 November 2024, article, accessed 17 February 2025, <https://www.anz.com/institutional/insights/articles/2024-10/the-digital-payment-revolution>

ANZ Worldline 2024, ‘Why Chief Market Officers should prioritise their payment strategy Part I’, ANZ Worldline website, article, 9 September 2022, accessed 17 February 2025, <https://anzworldline.com.au/en/home/knowledge-hub/blogs/why-chief-market-officers-should-prioritise-their-payment-strate>

Xero 2024, ‘I want to pay that way’, Xero website, report, 2024, accessed 17 February 2025, <http://www.xero.com/campaign/i-want-to-pay-that-way>

Knowledge at Wharton Staff 2017, ‘Why Amazon’s ‘1-Click’ Ordering Was a Game Changer’, Knowledge at Wharton website, podcast and article, 14 September 2017, accessed 11 March 2025, <https://knowledge.wharton.upenn.edu/podcast/knowledge-at-wharton-podcast/amazons-1-click-goes-off-patent>

Google Pay is a trademark of Google LLC.
Apple Pay is a trademark of Apple Inc., registered in the U.S. and other countries.

Important Information: Information in this article is current as at 14 March 2025 and is subject to change. This article is provided for general information purposes only and does not have regard to the situation or needs of any reader and must not be relied upon as advice. Before acting on this information, consider its appropriateness to your business Cuscal Limited ABN 95 087 822 455.

Why Smart AI Starts with Smarter Data

Posted on by Rachael Shupe
Lady looking at a tablet.

Getting the Most Out of Your AI by Improving the Quality of Your Data
AI is transforming how payments businesses, financial institutions, and corporates operate by improving efficiency, fraud monitoring, and customer experience. The value AI delivers hinges on the quality of the data it processes, a key theme discussed at Cuscal’s Curious Thinkers 2024 event.

AI applications are already making an impact in financial services with customer service bots, predictive analytics, and fraud monitoring systems. According to the Wall Street Journal, businesses are already using AI to provide personalised offerings to clients, identify clients, and identify fraud in real-time.

AI adoption in financial services is accelerating, with a recent ASIC review identifying 624 AI use cases across banking, credit, insurance, and financial advice. Over half (57%) were developed in the past two years or still in progress, and 61% of licensees plan to expand AI use within the next year. This momentum reflects the sector’s commitment to leveraging AI-driven solutions to stay competitive and deliver enhanced value to customers.

These advancements are delivering measurable benefits, but they are only as effective as the data that supports them. As IBM notes, poor-quality data can undermine AI initiatives, leading to unreliable outputs and heightened business risk.

The Opportunity for Payments Businesses
Generative AI is reshaping industries, offering both economic and operational advantages. J.P. Morgan Research estimates that generative AI could boost global GDP by as much as 10%, adding between $7–10 trillion to the economy. Over the next few years, it is also expected to drive a significant surge in workforce productivity.

Closer to home, AI adoption is delivering tangible economic benefits for Australian businesses. Recent research from Microsoft and Mandala estimates that by 2035, the AI economy could generate $18.8 billion in annual revenue for Australia. Additionally, businesses investing in generative AI are seeing a $3.50 return for every $1 spent, often within just 14 months.

The success of these AI systems, however, hinges on the quality of the data driving them. AI tools process enormous amounts of datasets to generate insights. When those datasets are incomplete, inaccurate, or poor quality, the results can be unreliable—or worse, damaging.

The Quality Question
Payments providers and financial institutions handle vast amounts of data every day. From transaction histories to customer profiles, this data feeds into AI models that help businesses make smarter decisions and optimise operations.

When data quality is neglected, the consequences can ripple across the organisation and may contribute to:   

  • Misjudged risk assessments, leading to financial losses or missed opportunities 
  • Flawed market insights, resulting in poor investment decisions
  • Inaccurate customer recommendations, damaging trust and satisfaction

As AI adoption accelerates, so too does the importance of ensuring data is accurate, complete, and relevant. Details that might have been overlooked in the past—such as timestamps or metadata—now play a critical role in delivering reliable AI outputs.

Steps to Improve Data Quality
Investing in data quality is critical for payments businesses aiming to leverage AI effectively. Taking action in these areas can make a significant difference:

1. Data cleaning: Removing or correcting errors ensures accuracy and improves performance. IBM highlights how this step reduces risks and enhances results.
2. Data governance: Establishing clear processes for collecting, storing, and managing data creates consistency and reliability.
3. Regular monitoring: Ongoing audits help identify and fix data quality gaps before they affect AI outputs.

By addressing these challenges, organisations can unlock smarter decision-making, better customer outcomes, and a competitive edge. Because high-quality data isn’t just a technical asset—it’s a strategic one.

The Future of AI in Payments
The payments industry is evolving rapidly, with AI playing an increasingly important role in shaping it’s future. Organisations ready to invest in data quality will be the ones leading the way.

References
Australian Securities & Investments Commission, ‘Beware the gap: Governance arrangements in the face of AI innovation, Report 798’, Australian Securities & Investments Commission website, report, October 2024, accessed 10 January 2025,<https://download.asic.gov.au/media/mtllqjo0/rep-798-published-29-october-2024.pdf>

Belle, L 2024, ‘These New AI Bots Will Do Just About Anything for You’, Wall Street Journal, article, 24 August 2024, accessed 10 January 2025,<https://download.asic.gov.au/media/mtllqjo0/rep-798-published-29-october-2024.pdf>

Bousquette, I 2024, ‘Visa Has Deployed Hundreds of AI Use Cases. It’s Not Stopping’, Wall Street Journal, article, 1 November 2024, accessed 10 January 2025, <https://www.wsj.com/articles/visa-has-deployed-hundreds-of-ai-use-cases-its-not-stopping-4febe1b4>

J.P. Morgan, ‘Is generative AI a game changer?’, J.P. Morgan website, global research, 14 February 2024, accessed 10 January 2025,<https://www.jpmorgan.com/insights/global-research/artificial-intelligence/generative-ai>

|Microsoft, ‘New research identifies Australia’s most promising opportunities in the new global AI economy’, Microsoft website, features, 7 November 2024, accessed 10 January 2025, <https://news.microsoft.com/en-au/features/new-research-identifies-australias-most-promising-opportunities-in-the-new-global-ai-economy/>

Rogers, J 2024, ‘What Is Data Cleaning?’, IBM website, article, 29 November 2024, accessed 10 January 2025,<https://www.ibm.com/think/topics/data-cleaning>

Important Information: Information in this article is current as at 19 February 2025 and is subject to change. This article is provided for general information purposes only and does not have regard to the situation or needs of any reader and must not be relied upon as advice. Before acting on this information, consider its appropriateness to your business Cuscal Limited ABN 95 087 822 455.

Why Leadership Holds the Key to AI-driven Growth

Posted on by Rachael Shupe
Lady standing with her arms folded.

CEOs are crucial to maximising the benefits of AI
The rise of AI opens up exciting opportunities for payments businesses to grow quickly, but it also brings its share of challenges. CEOs are uniquely positioned to guide their organisations in using AI effectively and across the board.

The challenges of using AI to scale
One key learning from Cuscal’s Curious Thinkers 2024 event – scale is invaluable to businesses. Particularly when it comes to keeping their valued customers happy and creating the payment solutions of the future.

We are living in exciting times. New technology—especially AI—has kicked open the door of opportunity for businesses, offering new pathways to expand and grow.

According to Accenture’s report on the state of AI Maturity, scaling with AI comes down to mastering a set of key capabilities in the right combinations—not only in data and AI, but also in organisational strategy, talent and culture. To maximise its potential, it must be applied effectively across the business as a whole, ensuring:

  • the use of AI supports the overall business objectives,
  • innovation and creativity are encouraged, and
  • everyone is on board with the approach, from leaders to teams.

If you are currently using AI for small projects, the thought of transitioning to widespread use might be overwhelming – it can be a formidable task.

Many businesses operate in silos, which can lead to mixed efforts, poor communication, and inefficiencies. AI initiatives often highlight these problems even more.

There can also be fear around AI—it can feel complex and risky. To succeed, it’s crucial to get everyone in the organisation to understand and support its value.

CEOs must lead the way
Scaling doesn’t happen without teamwork, but the CEO plays a critical role in its success.

As the person with the big-picture view, the CEO has the influence needed to break down the barriers between teams and keep everyone focused on their shared goals.

In fact, a study from Accenture found that when CEOs lead AI efforts, companies tend to see better results because they are uniquely positioned to:

  • Set a clear vision for what AI can achieve,
  • Build trust and confidence in the technology, and
  • Ensure AI projects are part of the larger business strategy.

The same study also reported that when leaders believe in AI early on, not only is adoption accelerated, it also drives positive changes across the business. This highlights the CEO’s crucial role as both a guide and a champion for AI.

Turning opportunity into action
Recent articles in IT Wire and IT News highlight an exciting turning point for Australian businesses. With groundbreaking technological shifts, the opportunities to unlock new growth are immense—and bold CEO’s are leading the charge.

Telstra’s CEO, Vicki Brady, has implemented AI tools including AskTelstra and One Sentence Summary to enhance customer service. Similarly, Wesfarmers’ CEO, Rob Scott, introduced AI-enabled technology in Bunnings delivering real-time product information, improving both customer experience and operational efficiency. These stories underscore how decisive leadership is driving innovation and shaping the future of business.

References:
Accenture: The Art of AI Maturity | Accenture
IT Wire: iTWire – Telstra scales up AI adoption following ‘promising pilots’ of generative AI solutions improving customer experience
IT News: ‘Wesfarmers goes deeper into AI and digital‘

Important Information: Information in this article is current as at 13 February 2024 and is subject to change. While such material is published with the necessary permission, Cuscal does not accept any responsibility for the accuracy or completeness of any such material. This article is provided for general information purposes only and does not have regard to the situation or needs of any reader and must not be relied upon as advice. Before acting on this information, consider its appropriateness to your business Cuscal Limited ABN 95 087 822 455.

From Leadership to Loyalty

Posted on by Rachael Shupe
Charlotte Rush pictured on stage at Curious Thinkers 2024

How To Build Customer Experience Excellence by Unlocking Leadership Potential
In an industry driven by precision, trust, and innovation, payments businesses often focus on the technical infrastructure that powers their operations . However, a fundamental, often overlooked element of success lies in the people who lead these businesses—your managers. As Charlotte Rush, Head of Growth at Inventium, pointed out during Cuscal’s Curious Thinkers 2024 event, leadership is not only the heart and soul of organisations but also a critical driver of customer experience and, ultimately, business performance.

The Leadership Tightrope
In today’s fast-moving business landscape, managers face unprecedented expectations. They are tasked with motivating teams, navigating technological disruption, and maintaining regulatory compliance—all while being thrust into roles with minimal preparation. As Rush aptly noted,

Management is the only job you don’t practice before you do it.

This gap in preparation often results in managers who are technically proficient but lack the people-centric skills needed to build team resilience, navigate complexity, and inspire innovation. The consequences ripple outward, affecting employee engagement and ultimately customer satisfaction.

Why Leaders Matter
Your managers don’t just oversee operations. They are custodians of culture with the power to influence how well teams adapt to change, innovate, and ultimately enable seamless customer experiences.

How Smart Companies Build Better Leaders 
Organisations that excel at leadership development recognise it as a strategic investment, not a cost. Rush’s research highlighted several traits that standout companies share to prepare their managers for the challenges of tomorrow.

Here are the top strategies you can adopt: 

1. Create training built for real-world challenges 
Seek, a leader in talent management services uses virtual reality and in-person workshops to prepare their leaders for complex scenarios. Payments businesses can tailor similar training to simulate the environments their executives will navigate during growth phases.

2. Give leaders the support they need
Zillow, a USA-based tech real-estate business, pairs managers in mentorship programs to share ideas and problem-solve. Payments leaders could use peer networks to tackle challenges like scaling secure systems or improving customer retention.

3. Test leadership strategies before rolling them out
Deloitte’s ‘people panel’ experiments with leadership ideas on small groups before applying them broadly. Payments businesses can test compliance processes or CX innovations the same way.

4. Show that leadership is a priority
Seek’s CEO personally invites executives to their leadership program, making attendance non-negotiable. This level of executive sponsorship signals to teams that leadership development is integral to business success.

Measuring What Matters
Investing in leadership is only as effective as the metrics used to evaluate it. Rush cautioned against reliance on “vanity metrics,” such as generic engagement scores or isolated training attendance. Instead, payments organisations must tie leadership outcomes to tangible business goals:

  • Customer Metrics: Track improvements in customer retention, satisfaction, and transaction speed as leadership skills evolve.
  • Employee Performance: Measure team efficiency, error reduction, and adherence to regulatory standards under well-trained managers.
  • Operational Outcomes: Monitor the scalability and security of payment systems as leadership initiatives take hold.

Strong Leaders Build Strong Payments Businesses
To drive meaningful change, payments organisations must move beyond technical training and invest in leadership development that fosters a customer-first mindset, builds resilient teams, and delivers measurable business outcomes. As Rush concluded, “If our leaders fail, we fail.”

Watch Back to the Future: The Workplace for 2025 and Beyond from Curious Thinkers 2024 for more actionable insights into leadership excellence and how it drives competitive advantage in the payments space.

Important Information: Information in this article is current as at 12 November 2024 and is subject to change. While such material is published with the necessary permission, Cuscal does not accept any responsibility for the accuracy or completeness of any such material. This article is provided for general information purposes only and does not have regard to the situation or needs of any reader and must not be relied upon as advice. Before acting on this information, consider its appropriateness to your business Cuscal Limited ABN 95 087 822 455.

How to Build your AI Rulebook

Posted on by Rachael Shupe

Artificial Intelligence (AI) is fast becoming a feature of Australian business – whether senior management likes it or not. And as employees become more comfortable with tools like ChatGPT, businesses will need to create, implement and enforce rules to govern its usage.

The AI Train Has Left the Station  
One of the central themes to emerge from Cuscal’s flagship thought leadership event, Curious Thinkers 2024, was the rapid adoption of AI technology by Australian workers, many of whom are already using it in their daily tasks.  Research commissioned by Salesforce and Slack reveals that 53% of Australian professionals are actively using or experimenting with generative AI in their work environments, a notable increase from 36% in 2023. Alarmingly, 44% of employees in Australia are utilizing generative AI without the oversight or permission of business leaders, according to research conducted by automation specialist technology firm UiPath, which surveyed over 1,100 Australian workers.

During the Curious Thinkers 2024 session titled The Future of Operating Models and Workforce Shifts in the Age of AI, the panel discussed that there can certainly be benefits from employee AI experimentation and agreed that employees are often best placed to identify where AI can improve day-to-day tasks and unlock efficiencies. But without proper guidance, a ‘cowboy’ attitude to AI deployment carries numerous risks, including compliance breaches, data privacy violations, and misaligned business objectives.

Playing by the Rules 
Businesses need to develop and implement guidelines or policies for AI usage even if they’re not using the technology in any official capacity – because studies show that employees are using it without being expressly permitted.

These rulebooks will vary between businesses, but some of the ideas touched on by the panel include: 

1. Program usage 
Businesses must clearly specify which AI programs can be used by employees. This ensures that all AI tools are vetted for quality, safety, and compliance – reducing the risk of unsanctioned AI use. 

2. Data integrity 
Businesses need to define what data can be used as input for the AI. This is crucial for maintaining data privacy and security, and for ensuring that the AI operates within its intended parameters. 
 
 3. Train and customise 
For an AI tool to be truly fit for purpose, it needs to be trained on a business’s own data so it can refine and optimise its output. This even extends to off-the-shelf AI solutions, which should be trained using internal data to help give context to the work being done.  
 
 4. Align with business goals 
All AI experiments and use cases should be in direct alignment with the business outcomes that the business is driving. This helps to ensure that AI usage contributes to the overall objectives of the business, rather than becoming a distraction.

Lead, Don’t Follow 
Each payments business will need to consider its own operational structures and reporting lines. This will ensure that any AI experiments are being conducted appropriately, and that successful ones can be developed and further implemented across the organisation.   

Ultimately, the exact shape of these rules and reporting lines will depend on individual business goals, but these four common themes should provide a useful starting point for executives looking to shore up their AI practices.  

AI Adoption in Australia

  • Generational Divide: Adoption rates show that 63% of Millennials, 57% of Generation Z, and 44% of Generation X are leveraging generative AI technologies compared to just 20% of Baby Boomers . This indicates that younger generations are more likely to embrace AI technologies in their daily and professional lives.
  • Business Integration: According to an independent survey commissioned by business loan comparison platform Small Business Loans Australia 60% of Australian businesses are already using or planning to integrate AI into their operations over the next two years, with 37% having adopted it already.
  • Productivity Gains: Embracing the use of AI to improve existing processes and enhance platforms is the safest place to start your generative AI journey and deliver incremental benefit over time.

These statistics highlight not only the rapid growth and integration of AI within Australian workplaces but also emphasise the necessity for organisations to take proactive steps to ensure they harness these tools effectively while safeguarding compliance and aligning with strategic goals.

Important Information: Information in this article is current as at 8 January 2025 and is subject to change. This article represents the opinions and views of the personal experiences of the panellists only. This article is provided for general information purposes only and does not have regard to the situation or needs of any reader and must not be relied upon as advice. Before acting on this information, consider its appropriateness to your business Cuscal Limited ABN 95 087 822 455. 

Why the Consumer Data Right is more than a compliance cost for non-bank lenders

Posted on by Rachael Shupe
Picture of Bronwyn Yam

The past couple of years have meant significant growth for non-bank lenders and there are no signs of slowing down, says Bronwyn Yam, the chief product officer at Cuscal.

According to the RBA, the sector grew on average 15 per cent on a six-month annualised basis, more than twice the rate recorded by banks.

It is an exciting – and competitive – time. And it is in this context that the non-bank lender sector prepares to be the next one rolling out the Consumer Data Right (CDR) in Australia. While some organisations try to understand how to best navigate this complex initiative, a key aspect may get lost amid the regulatory language: CDR is way more than compliance costs.

For those organisations willing to make this part of their digital transformation, the initiative presents opportunities to stay competitive, improve efficiency, enhance customer experiences, and drive innovation in the financial services sector.

As a partner of many banking and non-banking organisations, we’ve seen firsthand how data can improve an organisation’s ability to draw strategic insights for its business plans. The good news is that some implementations can be API-driven on a subscription basis, enabling users to securely share their data and empowering companies to build improved financial applications.

Here are key takeaways on how a well-implemented CDR solution can boost businesses.

  • Improved customer experience: As an accredited organisation, non-bank lenders will have access to use consumer data to offer more tailored solutions. Companies that channel this supercharged data pool to drive innovation and product development will deliver improved customer experiences and personalised financial services – a potential make or break in a competitive environment. Easy wins include increasing conversion rates by fast-tracking your lending application process with a mobile-first experience, expedited approval times, quick account verification and pre-funds checks, and streamlined onboarding, easing the deposit of funds and progressing the lending cycle from origination to collections. And this is just the beginning of improved customer experience.
  • Increased visibility of client movement: Non-bank lenders, as mandated data holders, should want access to the metadata generated by their existing customers sharing their data with other organisations. This new dataset becomes a source of powerful insights. At Cuscal, we call them a moat for our clients, protecting their businesses’ revenue and profit. The premise is that if companies use and analyse the data properly, they will notice trends or clients looking to move, allowing them to counteract with a better experience.
  • More accurate risk management: While accessing data is a crucial step in developing a financial application, extracting insights from it truly unlocks its value. Adding comprehensive data overlay services helps companies harness the power of data to make more informed lending decisions, improve risk control, proactively manage hardship, and reduce default rates. Benefits include a deep understanding of spending behaviour with access to enriched transaction details, empowering non-bank lenders to improve their risk assessment capabilities.
  • Increased cyber security: Maintaining robust cyber security practices helps build trust and confidence with your customers and assures them that their data is handled securely and responsibly. CDR also changes the game for consumers and businesses regarding cyber security. It is a safer solution than outdated methods, such as screen scraping, which require customers to share their login details with third parties (e.g. lenders and brokers) for the various compulsory checks for responsible lending obligations. Banning these insecure practices, such as sharing PDFs and scans of transaction statements, minimises the risks exposed by storing them.
  • Compliance with standards and regulations is a key requirement for organisations participating in the CDR framework. That means non-bank lenders will automatically adhere to industry standards and guidelines to ensure data security, limiting exposure to malicious activity.
  • Data protection measures include encryption, access controls, and secure data storage practices to safeguard sensitive information. The CDR framework also imposes ongoing monitoring and auditing of databases, securing consumer data by increasing the chances of discovering risks and losing integrity in datasets.

In summary, CDR is more than a compliance cost to non-bank lenders. It is the next step to increase business competitiveness and protect businesses and consumers in Australia. CDR is about giving consumers peace of mind when they transfer personal data online and giving them control over their vulnerable data.

As CDR continues to roll out, we anticipate a stronger, more protected ecosystem in which organisations, CDR solution partners, and customers are building collectively towards a safer digital economy.

There is much to learn from other industries in preparation for the legislation. However, the reality is that non-bank lenders should consider adopting CDR solutions regardless of the government timelines. CDR will be a reality and the sooner they can be ready and start benefiting from the advantages of data and insights to protect and boost their business, the greater value they will get for their investment.

By Bronwyn Yam, Chief Product Officer

This article was originally published on www.mortgagebusiness.com.au on 6 May 2024.

We’re a finalist at the APAC Payments Excellence Awards 2023

Posted on by Marketing Team

Image with logo of APAC Payments Excellence Awards announcing finalists for the year 2023

We are excited to announce that Cuscal has been named a finalist for Most Impactful Payment Industry Innovation at the 2023 APAC Payments Excellence Awards.

We were nominated for our work in delivering capability that our clients use to create new, modern, digital payment experiences that enable them to innovate and compete as early adopters. We are proud to support our clients in delivering innovative and cutting-edge payments solutions that help them best serve their customers and grow their businesses.

The APAC Payments Excellence Awards, judged by a panel of experts, recognise excellence in the payments industry in the Asia Pacific region based on innovation, collaboration, and achievements.

We are honoured to be a finalist and look forward the awards on 13 October. Congratulations to everyone who was nominated!

Pathways to access PayTo as an Initiating Business or Payment Initiator

Posted on by Marketing Team

As more banks (and by extension millions of customers) progressively connect to the PayTo ecosystem, attention is shifting to those businesses that have been enabled as PayTo Users and the innovative use cases that they are bringing to market.

But in an ecosystem of directly and indirectly connected participants, what pathways are open to businesses to access PayTo and the New Payments Platform (NPP)? And what role do different PayTo Users play in the creation, initiation and settlement of payments?

In this article we aim to shine a light on these questions.

The PayTo ecosystem

PayTo is an interconnected network of participants that connects customers, business and their financial institutions, facilitating the creation of PayTo agreements and ensuring the smooth flow of payment initiation requests and settlement of funds in real-time.

The PayTo participant ecosystem
Figure 1: PayTo participant ecosystem

While banks are instrumental when it comes to facilitating the authorisation and management of PayTo agreements by customers and settling funds when valid payment initiation requests are received, PayTo Users are the main players when it comes to the creation and initiation of PayTo agreements.

PayTo Users

In the PayTo ecosystem there are two types of PayTo Users: the Initiating Business and the Payment Initiator.

Initiating Businesses are responsible for entering into PayTo agreements with the debtor customer, defining the PayTo agreement terms that will be registered in NPPA’s Mandate Management Service (MMS) and authorised by the customer through their digital banking channel, and initiating requests for payment in accordance with the agreed terms.

Payment Initiators are responsible for the exchange of PayTo agreement creation and payment messages to/from the Initiating Businesses with the wider PayTo ecosystem, via APIs provided by the sponsoring Initiating Participant.

Initiating Participants

To access PayTo as a Payment Initiator, businesses need to be sponsored by an Initiating Participant: either a Connected Institution or an NPP Participant or Identified Institution that has been certified as a Payment Initiator.

Connected Institutions are only able to use the non-value messaging capabilities of the NPP Basic Infrastructure to create a PayTo mandate and send a Payment Initiation Request. They cannot clear or settle payments or issue or manage PayIDs.

NPP Participants and Identified Institutions that have been certified as a Payment Initiator have access to all flows and options for NPP messaging and services, delivering end-to-end payment initiation, PayID issuance and management, and clearing and settlement services through a single provider.

Clearing and settlement services can only be provided by an NPP Participant licensed by APRA as an Authorised Deposit-Taking Institution (ADI)This helps to keep payments safe because as ADIs, NPP Participants meet the prudential requirements set by the Australian Prudential Regulation Authority (APRA) to operate in the regulated payments environment and have access to RBA settlement facilities. Like in other payment systems, the NPP Participant can sponsor other organisations to provide clearing and settlement services on their behalf, and in the NPP, these entities are referred to as Identified Institutions.

Figure 2: Cuscal NPP services compared to other directly connected participants

Why Cuscal

As the first directly connected participant to be certified by NPP Australia (NPPA) as an Initiating Participant and Payer Participant, Cuscal plays a unique role in the PayTo ecosystem.

As a certified Initiating Participant, Cuscal connects high volume and high growth businesses, payment service providers, platforms and payment facilitators to the NPP as Identified Institutions and Payment Initiators, providing access to all the features of the NPP under a sponsorship arrangement. Businesses can connect to PayTo as an Initiating Business through a Payment Initiator under a proprietary commercial arrangement with a Payment Initiator that has been connected to the Platform by Cuscal.

As a certified Payer Participant, Cuscal provides banks, credit unions and mutual banks with access to the services required to receive, process and manage PayTo agreements and payment initiation requests, as well as the infrastructure required to clear and settle payments.

At Cuscal we have been helping our clients to access Australia’s payment systems with innovative solutions for over 50 years. As the market leader in providing NPP services, with over 4 years NPP experience enabling 60+ implementations since 2018, we’ve helped more organisations to access the NPP than anyone else, including more than half of all financial institutions and all of the payment service providers that are providing payments on the Platform today.

With the launch of PayTo, Cuscal has the scale, expertise, trusted industry position and comprehensive real-time account-based payment and payment initiation solutions required by Payment Initiators.

To find out more about connecting to PayTo as a Payment Initiator and how you can provide PayTo services to your business customers, contact Cuscal.

PayTo for business. The always-on digital way for businesses to initiate real-time payments from customers’ bank accounts.

Posted on by Marketing Team

The rollout of PayTo capabilities to online banking channels, with Great Southern Bank leading the way, has sharpened focus on ‘how’ and ‘why’ businesses should become initiating participants to enable real-time and future dated payments from their customers’ bank accounts.

In this post we look at how PayTo can help initiating businesses thrive in a digital economy with fast, reliable and secure payments that keeps money moving 24/7.

The case for PayTo

As an enabler of real-time digital commerce, PayTo supports a broad range of use cases, delivering tangible benefits for the initiating business, including:

Explicit customer authorisation before any payments can be processed from bank accounts, addressing one of its biggest payment challenges facing businesses today; the requirement for consent via Strong Customer Authentication to reduce the risk of fraud, unauthorised payments and chargebacks.

Message response times that are delivered in seconds, confirming that valid account details have been provided, that payment has been authorised by the account owner, and that funds are available at time of payment, improving the certainty of successful payment outcomes for the initiating business.

The real-time settlement of funds at time of payment to improve cashflow availability for reinvestment in the business.

From an operational perspective the data-rich ISO messaging capabilities of the NPP enables more precise transaction data to be included within payment initiation and clearing and settlement messages. Data that more accurately describes the terms of the payer customer’s authorisation, including; payment type (recurring, one-off or ad hoc), any ultimate creditor’s name, descriptions and creditor’s reference(s), all support the easier reconciliation of payments. This also provides richer data insights that businesses can use to tailor their products and services to optimise customer experience.

The format of PayTo mandates and the data that can be included offers significant benefits in terms of data quality and visibility, compared to the relatively opaque nature of direct debit arrangements established under the BECS Direct Entry system, particularly if the payment is being facilitated via an intermediary.

Taken individually, each feature of a PayTo mandate improves an aspect of the payment experience. Taken together they can help lower the total cost of payment acceptance for the initiating business.

How to connect to PayTo as a Payment Initiator or Initiating Business

Payment service providers, platforms and payment facilitators that process payments on behalf of other businesses, as well as high volume and high growth businesses that process their own payments, can connect to PayTo as a Payment Initiator through Cuscal, the market leader in NPP. Benefits include:

  • Only one access point required to initiate payments with all financial institutions connected to the NPP.
  • APIs supporting seamless integration and straight-through processes.
  • Structured data capabilities to support automated reconciliation.
  • Centralised, secure storage of PayTo mandates reducing the reputational risk from payments data breeches.

Other businesses can connect to PayTo as an Initiating Business through a Payment Initiator, benefiting from:

  • Real-time account validation when a mandate is created.
  • PayTo authorisation by the account owner through secure bank channels.
  • Real-time funds verification at the time of payment.
  • Real-time notification of payment outcomes.
  • Faster settlement compared to other payment methods.
  • Integration of notifications into customer service and support processes when a PayTo mandate is paused, changed or cancelled.

With PayTo now live in banking channels are you ready to transform your business with PayTo? To find out more about connecting to PayTo as a Payment Initiator, contact Cuscal.

Partnership in action. Monoova and the NPP

Posted on by Marketing Team

When the New Payments Platform (NPP) rolled out on Tuesday, 13 February 2018 uptake was gradual as financial institutions rolled out NPP payment functionality to different customer segments and channels. However, as real-time payments have become more ubiquitous and innovative payment service providers have been enabled on the NPP, the growth trajectory of the platform has gone from strength-to-strength.

As one of a very small group of payment service providers to be enabled on the NPP, payment automation specialist Monoova recognised the potential of the platform early, partnering with Cuscal to access the platform and automate many of the manual processes that occur ‘before’, ‘after’ or ‘around’ payments which can be an obstacle to growth for scaling businesses.

From mid-2022 the next phase of growth for the platform commences with the launch of PayTo, enabling a broad range of use-cases which will provide a springboard for future payments innovation. Once again Monoova will be at the forefront of NPP-enabled innovation, with Monoova’s clients to be amongst the first in Australia to be able to initiate payments from a funding account with the payer customer’s authorisation.

This case study looks at how Monoova has innovated on top of Cuscal’s NPP and PayTo solutions to bring to life truly unique propositions that make managing business payments easy, providing clients with access to a true end-to-end payment automation solution that leverages all the capabilities of the NPP as well as Cuscal’s scale, expertise and trusted industry position to initiate, process and receive real-time payments.