Aussie online payment developer battles eBay via ACCC

Simon Warner, CEO of Centricom said the company opposes eBay’s plans because it will severely limit competition, choice and innovation in the online payment space.

“Not only does it bar existing and potential competitors to PayPal in the sizeable eBay market, it will also stifle competition in the broader market by unfairly strengthening PayPal’s position with merchants who also operate outside eBay to the detriment of competitors and consumers,” claimed Warner.

He also challenged eBay’s view that the costs of the proposed conduct will be outweighed by the public benefit due to reduced fraud and increased confidence in payment systems.

“PayPal has not demonstrated that other electronic payments systems aren’t trusted or do not have similar safeguards,” he said. “For instance, direct deposit by internet banking uses a user ID and password and is no less secure than PayPal. eBay’s PayPal is not alone in restricting access to credit card or account details.”

Centricom believes eBay’s proposal is contrary to policy makers’ desire for more choice for the consumer. Warner said: “The Reserve Bank of Australia has a stated policy of increasing competition and has specifically referred to online direct debit payment methodologies, such as POLi, as examples of the sort of alternative payment options desirable in the Australian context.”

At present, PayPal is only one method of payment offered on eBay. Other methods include credit card payment, bank cheque, personal cheque, cash, and direct bank deposit.