BENDIGO Bank has launched new technology which enables customers to pay for their retail purchases using their smartphone.
The technology uses quick response (QR) codes generated by a smartphone app. A specialised terminal scans the code and processes a secure payment.
The technology, called redy, was developed in partnership with Bendigo Bank's subsidiary Community Telco Australia and Samsung Electronics Australia.
It is available to all retail customers and to merchants with a Bendigo Bank account.
Bendigo Bank's head of customer led connections Andrew Cairns says redy is unique because it rewards consumers, benefits businesses and raises money to support community fundraising initiatives.
"The face of banking is changing, with technology quickly revolutionising the way we use and move our money," he said.
"Our bank recognises this and we've developed our own solution that delivers mobile payments and a lot more.
"For consumers, redy is an app they can download and link to their Bendigo Bank account or any Visa or Mastercard account."
Community Telco Australia chief executive officer David Joss said the technology encouraged people to shop locally and was completely secure.
"When you scan your QR code, both devices get information from online independently," Mr Joss said.
"The merchant's terminal doesn’t receive your personal information, it accesses encrypted data online to process your payment."
Mr Joss said other benefits for businesses included same-day settlement and customer analytics.
In terms of the community fundraising aspect to the program, customers earn "creds" when they pay with redy, which can be donated to a charity or cause of their choice via the app.
Mr Cairns explains it as the digital version of dropping money into a collection tin.
Righteous Pups Bendigo is one of the first redy charities. Managing director Joanne Baker said she believed redy had the potential to revolutionise how the organisation collects donations.