Australia Post is expanding its e-commerce activities with the acquisition of an online paymentcompany amid continuing uncertainty over the future of its joint venture express subsidiaries Star
Track Express and Australian Air Express.The postal group announced today the takeover of payment gateway company SecurePay as part ofits strategy to expand its online services. SecurePay, founded in 1999 and with 60 employees inoffices in Melbourne, Sydney and Adelaide, offers commercial organisations, utilities, localgovernment and e-merchants secure B2B and B2C payment services via the internet, phone, or customsoftware applications. The company, which has around 19,000 business customers, will remain underits present management.
Australia Post Managing Director and CEO Ahmed Fahour said: “This acquisition assists with ourgrowth in the digital world as we move to offer everything we do in the physical world, digitally.Acquiring SecurePay strengthens Australia Post’s capability in offering business and governmentcustomers their own online payments channel and SecurePay capability in “shopping cart” paymentsalso positions Australia Post for the rapid growth of ecommerce in Australia.”
Australia Post said it already acts as an agent in the physical world for 750 business andgovernment agencies. The acquisition enables it to offer business and government customers anonline payment service delivered through their own website and with their own branding, and willcomplement the existing Australia Post-branded online payment channel, Postbillpay. In April thisyear, the new eServices division of Australia Post was launched and has developed a new groupwebsite, mobile apps for iPhone and Windows Phone 7, and an expanded Click and Send shippingservice.
Separately, Australia Post is boosting its parcels business with an exclusive deal for eBaysellers in the country to help simplify packing and posting items sold online. From this week,co-branded 500g and 3kg satchels are available to eBay members with flat-rate pricing. The launchof the new ‘eBay’ satchel follows the roll-out of Australia Post’s Click & Send service to eBayusers in Australia.
Peter Lavis, General Manager eTailing Fulfilment at Australia Post, said: “With 5.6 millionAustralians visiting eBay every month , we know that eBay trade contributes significantly to the 20million items Australia Post delivers every day, so this new partnership makes sense. Thepartnership with eBay is an important one, as we’re focussed on understanding the needs of onlinebuyers and sellers and the intricacies of the online world – our parcels business depends onit.”
Meanwhile, the ongoing review into the future structure of Star Track Express and Australian AirExpress, the two joint ventures between Australia Post and Qantas, has been extended into nextyear, Australian media have reported. Australia Post and Qantas said in August that they werecarrying out a two-month review to draw up a new strategy for the express companies.
But the Sydney Morning Herald reported recently that the review has been extended into next yearbecause of weak results at Star Track Express. The Australian Financial Review cited Qantas CFOGareth Evans as saying that the option of a full merger had been rejected due to its complexity andit would make more sense to create a new holding company with the two businesses operating asseparate units.
AaE, with more than 2,000 staff, is an integrated air express operator, operating a fleet ofeight freighters (B737s, B727s and BA146s) on more than 50 nightly routes between state capitals,with collection and delivery through a fleet of 850 courier vehicles. It also uses capacity onQantas and Jetstar passenger flights. Star Track Express, a premier road express transport andlogistics solutions provider, was acquired by Australia Post and Qantas jointly for A$750 millionin 2003. Since then the company has invested strongly in its nationwide network.
