Australia Post to close POLi Payments

Australia Post will close the domestic operations of its POLi Payments business at the end of September.

The postal service announced the impending closure in a brief status notification to merchants.

“Australia Post has made the difficult decision to close the POLi business in Australia,” it said.

“We want to sincerely thank you for your support and understanding as we wind down operations by September 30 2023.

“Until then, we will provide you with the same level of support we would normally provide.”

POLi has been used as a way for customers to make near instantaneous money transfers to pay for goods and services.

The service has found uses in recent years to enable customers to deposit money with cryptocurrency exchanges that they could then use to buy coins.

But the service was frowned upon by banks and also by some customers, as it required users to hand over their bank account login credentials. 

A number of banks have long-established policies that recommend customers not to use the service.

That appears to have escalated recently with the Commonwealth Bank of Australia indicating it would no longer be accepting POLi vector payments from mid-July 2023.

It’s understood CBA made the call on concerns around the security aspects of POLi Payments.

“The bank urges customers making online payments to do so via the Bank’s own NetBank site for their security,” its site states. 

It appears this was a factor in Australia Post choosing to close the Australian operations of POLi. Banking Day reported CBA is the third major bank to go down this path.

Although POLi in Australia will cease to exist, it will continue to operate in New Zealand, via Merco, which said it had acquired "local ownership" and retained a development team so operations can continue uninterrupted.

Merco plans to take full control of the system, with intentions to introduce new services for its New Zealand audience following the switch of ownership. 

An Australia Post spokesperson told iTnews the decision to close POLi in Australia follows a review of the business.

“Australia Post is working closely with Merco, the New Zealand distributor of POLi, regarding the continuation of service and operations in New Zealand and expects to make an announcement shortly," the spokesperson said.

“Australia Post will work with Australian customers as they transition to alternative payment options.”