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A new auction app currently under development aims to help buyers and agents by making it easier to pay an auction deposit.

The new app, DEFT AuctionPay, has been created by Macquarie Bank and is currently on trial with five agencies across NSW and Victoria. It is expected to launch in the first half of 2017 and aims to remove the frustration that can sometimes occur around deposit funds at auction.

REINSW Residential Sales Chapter Committee members Sarah Bester and Betty Ockerlander, and Auctioneer members Jesse Davidson and Paul Millett recently spoke with Brad Hamilton and Jenny Strong from Macquarie Bank to discuss the new app.

Sarah Bester, General Manager of Ray White Double Bay, said: “The system is very simple to use and given the challenges we all face with purchasers not having cheques available to them, it is a solution that will walk us into the future of deposit transactions on property purchases." 

REINSW and Macquarie Bank share an optimistic view that this app could take the frustration out of auction transactions for auctioneers, selling agents and purchasers. 

How does the Auction Pay app work? 

After the hammer falls at an auction an agent logs into the app and then enters the property address and sale price. The app then calculates the deposit and prompts the buyer for payment. 

Once the buyer agrees to the terms and conditions, the transaction is complete and an email receipt is sent to the agent and the buyer. The transaction takes around two minutes to complete.

If the buyer needs to access more than one account to achieve the 10% deposit for the transaction they can do this. 

The agent must have a transactional account with Macquarie Bank to use the app, and need a tablet or mobile phone device connected to the internet (iPhone or Android). 

The development of this app is timely given that the days of cheques are numbered!

Cheque days are numbered

The Australian Payments Clearing Association (APCA) Milestones Report showed that the use of cheques has dropped 73% since 2006 and amounts for only 1.2% of all non-cash retail payments.

It is expected that cheques will be completely phased out for the implementation of the New Payments Platform (NPP), which is scheduled to begin operations in late 2017. 

The NPP infrastructure for Australia's low-value payments will provide businesses and consumers with a fast, versatile, data-rich payments system for making their everyday payments.

APCA CEO, Leila Fourie said: “Australia is leading the way in digital payments with continued strong growth in card payments, impressive smartphone penetration and improved digital literacy. 

“The industry’s New Payments Platform will provide a stimulus for yet more innovation.”