NEWS
Shift to digital
economy in Australia
accelerating
THE latest Digital Economy report
released by Australian Payments Network
(AusPayNet), the payments industry
self-regulatory body in the country, shows
Australia’s shift to a digital economy is on
the rise, with digital payments increasing
rapidly while cash and cheques decline.
The report reveals that card payments
are more popular than ever, with
consumers making over 8.3 billion card
payments in 2017, equating to almost
23 million transactions each day. Almost
seven in 10 of these card payments were
made with a debit card, and debit card
payments grew 15.3% to 5.6 billion in
2017, up 87% since 2012.
The growing consumer preference
for digital payments is reflected in the
rapid decline in cheque use and ATM
withdrawals, which together accounted
for fewer than two million transactions a
day in 2017. The AusPayNet report shows
that in 2017 there was a 19.7% decline
in cheques written, down to 89.7 million;
and a 5.9% decline in ATM withdrawals,
down to 610.1 million.
Commenting on the report,
AusPayNet CEO Leila Fourie said: “The
continued shift to digital payments is
not surprising given how connected and
mobile our society is. Almost nine in every
10 Australians own a smartphone, and
more than three in every five use them
to make payments. This is driving the
uptake in digital payments and laying
down a powerful base for the next wave of
payments innovation.”
Examples of payments innovation
include mobile apps providing a more
seamless payment experience and the
recent introduction of the New Payments
Platform (NPP), which allows customers
to make easier and faster payments using
a mobile-phone number or an email
address rather than BSB (Bank State
Branch) and account number.
The Digital Economy report shows
consumers are embracing e-commerce,
with 72% purchasing online in 2016-17,
up from 61% two years earlier. The value
of online spending continues to grow and
in 2016-17 was up 15.1% on the previous
year. The uptake of wearables is growing
steadily, with smartwatch penetration
reaching 9% in 2017, up from 5% in
2016.
AusPayNet’s report revealed that
Australia’s migration to digital payments
is enabled by a high penetration of point-
of-sale (POS) terminals and a low number
of ATMs relative to many overseas
countries. ra
JD Sports completes Finish Line acquisition
US retail chain The Finish Line and
European sports-fashion retail company
JD Sports Fashion have recently completed
their merger. Finish Line is now an indirect
wholly-owned subsidiary of JD Sports,
thereby creating a market-leading multi-
channel, multi-branded retailer of sports
fashion and footwear with expanded global
scope.
“We are delighted to announce that
we have today completed the acquisition
of Finish Line,” said Peter Cowgill,
executive chairman of JD Sports. “This
marks a momentous step in JD Sports’
global expansion and represents an exciting
opportunity to bring our market-leading,
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Retail Asia June/July 2018
multi-brand retail proposition to the world’s
largest athleisure market, both online and in
stores. Our team will now collaborate with
the experienced Finish Line management
team and the key global brands to bring
best-in-class retail theatre and multi-channel
consumer experience to the US.”
Sam Sato, chief executive officer of
Finish Line, added: “Today, with the closing
of this merger with JD Sports, Finish Line
opens an exciting new chapter. With a global
footprint, together we will bring leading-edge
innovation and service to our customers. Our
shared vision and drive to provide a premium
retail experience will further our impact as a
leading, premium multi-channel retailer of
sports, fashion and outdoor brands.”
Barnes & Thornburg served as legal
counsel to Finish Line. PJ SOLOMON
served as lead financial advisor, Houlihan
Lokey Capital served as financial advisor and
Faegre Baker Daniels served as legal counsel
to Finish Line’s special committee of the
Board of Directors in connection with this
transaction.
Barclays served as lead financial advisor
to JD Sports and Hughes Hubbard & Reed,
Addleshaw Goddard and Taft Stettinius &
Hollister served as legal counsel to JD Sports.
Barclays, HSBC Bank and PNC Bank,
National Association provided financing to
JD Sports for the transaction. ra