Issue 3

In March 2007, BPAY expanded its membership base to include the Payer Institution Member (PIM). PIMs are not necessarily ADIs, but organisations such as church development funds, that maintain value accounts for customers. As the name implies, a PIM can only act as a Payer Institution.

Since the launch of this new membership class 18 months ago, BPAY has welcomed 13 PIMs to the Scheme, more than double its forecast of six PIMs in the first two years.

GE Money Home Lending and Lombard Finance are the two most recent recruits, among a spectrum of personal finance and credit providers.

Servicing Programme Manager, Darren Boddington from GE Money Home Lending (GEMHL) said their aim is to provide borrowers with the BPAY functionality so that their mortgage can be used as a centrepiece of personal finance.

Viewed as a competitive edge, BPAY enhances GEMHL's product offering, giving customers a simpler option to manage their finances.

GEMHL borrowers have been informed of the BPAY option via their statements and information on their Internet banking site, with BPAY volumes already exceeding next year's targets.

According to BPAY Operations Manager Keith Brown, there has been impressive volume generated from these limited number of new Members. And, the average transaction value of $880 far exceeds the average BPAY payment of $630.

"This new membership class was designed to give people broader access to BPAY at a time when electronic banking was reaching critical mass," said Brown. "The ongoing successful recruitment of PIMs, and the acceptance of BPAY by its customers, illustrate the continued appeal of this payment option."