Robin Beauchamp

Australian superannuation funds and SME employers must move to embrace a digital, member direct model of contributions payment technology that is gathering pace alongside the 2017 introduction of the Reserve Bank of Australia’s New Payments Platform (NPP).

“Clearing houses have traditionally played a significant role in the processing of superannuation contributions for Australia’s small-to-medium enterprises,” said InPayTech chief executive Robin Beauchamp.“

“But the introduction of the NPP later this year heralds a change in the ground rules for payment processing, and provides a mechanism for same-day settlement of superannuation payments.“

“This is a step change in not only the time and cost efficiencies for superannuation transactions, but will heighten consumer expectations of the way their money leaves the employer, moves through the electronic banking system, to their super account,“ he said.

Mr Beauchamp said the introduction of SuperStream’s administrative ‘plumbing’ has positively impacted processing times and streamlined the transmission of superannuation contributions data and payments.“

“However, the current Direct Debit payment rules means the traditional Clearing Houses must hold the contribution money in their trust account for an average of 4.2 days. New technology, available to SME’s, securely bypasses this and reduces payments time to the same day,” he said.

Mr Beauchamp warned funds and employers to remain vigilant to the reluctance by Clearing Houses and those organisations that direct their employee super through them to enable new technology.“These firms are reluctant to embrace any model that reduces their income – particularly one that removes the capacity to earn income for abiding by the Direct Debit rules,” he said.

“These firms are reluctant to embrace any model that reduces their income – particularly one that removes the capacity to earn income for abiding by the Direct Debit rules,” he said.
InPayTech’s PayVu technology is expected to transform the traditional approach to Superannuation contributions. The new payment model is called Employer Direct. Simply, this model emulates the NPP and replaces the average 4.2-day delay with same-day settlement.

PayVu is the first technology offer to provide Employer Direct – placing control back in the hands of the employer, along with the interest earned from the contributions money.
The benefit does not stop with the contribution transaction. It extends also to reconciling misplaced or mistaken allocations.

“For example, if the superannuation fund is unable to allocate a contribution, Member Direct enables the secure return/refund of the money directly back to the employer, removing the Clearing House from the transaction flow and allowing the employee contributions to be quickly re-allocated to the correct fund,” he said.

PayVu and the Employer Direct model provide an ideal opportunity for SME users of Clearing Houses to adopt an approach that delivers significant personal benefits to the SME owners and their staff. This latest technology approach is a clear disrupter and looks set to trigger the end of the traditional Clearing House solution for SME’s.

PayVu will be released on Monday, April 24, 2017.

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Robin Beauchamp

Australian small businesses operating cloud-based accounting software can benefit from a unique software overlay system called PayVu that speeds up superannuation payments to the same day, and eliminates the current inefficiencies of employers needing to deal with third party clearing agencies.

Designed by Integrated Payment Technologies Limited (InPayTech), PayVu reduces the transaction time of superannuation payments made by clearing houses from the average of 4.2 days currently, to the same day.

Additionally, by automatically linking data to each unique payment, the need for employers to manually match data to payments in their accounting software is also removed.

“Small business may be the backbone of the Australian economy, but superannuation payment requirements are the bane of the small employer.

PayVu solves what is currently for many of Australia’s 700,000 small to medium enterprise (SME) employers a thoroughly cumbersome and inefficient system,” said InPayTech chief executive Robin Beauchamp.

“PayVu not only removes the ‘middle man’ of clearing houses, but adds immediate ease, efficiency and security to the direct payment of employee super entitlements, without detracting from the access and control of payments for SMEs.

This is vital for cashflow sensitive small businesses,” he said.

Mr Beauchamp said the downstream benefits of making the payment of super more efficient at the point of payment for SME’s, from their own bank account (not a clearing house) include:

• Giving employers a direct relationship to each employee’s superannuation fund (and vice versa)
• Compliance with the Governments SuperStream reporting regime
• A potential dollar benefit to fund member (by having their retirement savings monies invested in their super account 4.2 days earlier)
• A benefit to super funds that are enabled to deal directly with the employer, not the clearing house, which is more efficient

Additionally, in the event of monies being returned from the superannuation fund the payment would be paid to the employer’s bank account. Currently, returned funds suffer delays through the Clearing House being paid , then being reconciled, before returning to the employer.

“Again,” Mr Beauchamp commented, “PayVu significantly reduces the delay in getting the funds invested.

“InPayTech has beta tested PayVu and is delighted with its proven capability. The introduction of this system to Australian small employers has far-reaching efficiency benefits.

We continue to explore other applications for PayVu technology beyond the superannuation sphere, and are excited to be focusing for the moment on making the payment of retirement savings far more speedy and efficient for SMEs,” he said.

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