The days of property buyers having to roll up to auctions armed with cheque books they might never otherwise use appear to be numbered with Macquarie Bank on track to launch Australia’s first electronic auction payment application in time for the spring auction season.
About a dozen agents in NSW and Victoria are now piloting the DEFT AuctionPay app, which allows buyers to complete an electronic transfer from their bank account via the payment portal and finalise deposit requirements in a matter of minutes.
Almost 100,000 Australians bought properties at auction last year. And, even though the use of cheques has plummeted to single-figure percentages over the past decade, the overwhelming majority of buyers still had to rely on a cheque to complete the purchase.
Macquarie Bank’s head of business banking, Dean Firth, said the new app provided unprecedented convenience at what was generally a time of high stress, including the flexibility to adjust the deposit amount once the result was known and instant confirmation that it had been submitted.
“Real estate agents are able to automate and digitise how deposits are paid at auction, meet all their legal and contractual requirements and improve the end-to-end process for buyers, vendors and their business,’’ he said.
“The early feedback from agents is that AuctionPay is a great client experience and is significantly improving their operational efficiency.’’
The app is only available to agents who have a transaction account with Macquarie. A bank spokesperson said yesterday about 40 per cent of real estate industry turnover was banked through Macquarie.
How AuctionPay Works
- After the hammer falls the agent logs into the application via a tablet or mobile device; enters the property address and the sale price and the app calculates the deposit
- The agent then hands over to the buyer to complete banking details and submit the online form
- Email receipts are then sent on-the-spot to both the agent and buyer confirming the funds transfer
- The app allows the buyer to draw funds from more than one account to raise the required deposit
