The report proposes significant government involvement in areas where Telpay argues that market forces would be far more effective in ensuring cost reduction benefits
Winnipeg, MB (PRWEB) May 30, 2012
In June 2010, the Minister of Finance, the Honourable James Flaherty, announced the formation of a task force for a payment system review and their final report was recently published. The report can be found at http://www.fin.gc.ca/n12/12-030-eng.asp. The Minister identified converting business payments from paper to electronic payments as an area where significant cost reductions could be achieved. Telpay Inc., the Canadian pioneers in payment service providers, feel that the means recommended by the task force for achieving these cost reductions are flawed.
The report proposes significant government involvement in areas where Telpay argues that market forces would be far more effective in ensuring cost reduction benefits. The structure proposed would inevitably be dominated by banks, meaning that independent payment service providers would be restricted to serving only banks. This would eliminate a crucial source of the innovation and competition needed to push Canada’s electronic payment industry to the level achieved by many other countries.
“It is likely that banks will be unwilling to give up the revenue they now receive from processing cheques even though electronic transactions are less expensive than paper,” says a Telpay Inc representative. “Traditionally, banks have added fees for personal electronic fees rather than reducing them to match running costs.”
Telpay Inc. proposes an alternative that would work to achieve the goals of efficiency, innovation, and competition sought by the Minister and would do so in less time than the Task Force proposes. Telpay proposes that businesses, not banks, should be the ones in charge of properly recording payments made and received. Telpay has used the payment consolidation system for the past 25 years, where both the payment information and the related funds can be efficiently transferred from payer to payee and offers its system for use by the entire industry. Payment service providers would compete on all levels of price, service, and innovation to meet the needs of both businesses and individuals. The Task Force proposes that the government create a system like this one, which would be both costly and would risk failure.
Telpay Inc. was formed in 1985 to provide telephone bill payment services to individuals and to eliminate the need for writing cheques. Telpay has evolved into a complete accounts payable system that allows businesses to send and receive electronic payments to anyone, eliminating the expense of producing and sending cheques .For a full explanation of Telpay’s proposal visit the new Telpay Inc blog at TheBetterWayToPay.ca