As the Reserve Bank of Australia undergoes a structured and lengthy consultation with the payments industry on driving innovation, an Australian business is taking on the major players in the multi-billion dollar bill payment sector.

The CEO of Flycke, a recent entrant to the bill payment sector, believes that regulation has been restrictive and the controlled nature of the payments infrastructure by the banks has limited new entrants to the payments industry.

"Since the 1980’s there has not been any real innovation in the payments marketplace, which has produced an environment where businesses do not have alternatives and the owners of the payment options have no real competition", says CEO Anthony Johnston.

"There is a need for innovation that is about what businesses want rather than what the existing infrastructure can deliver. Businesses are asking for this innovation, yet it seems the existing players are limited rather than expansive".

With the major banks focussing on securing their various platforms so they are stable, Flycke has been able to develop and launch options that have been taken up by businesses of all sizes, in direct competition to existing offerings.

Once a start up business, Flycke now includes multiple large billers, councils, carriers, and small businesses who otherwise find it expensive to utilise existing options.

As the two-speed economy continues to change consumer spending behaviour businesses are under increasing pressure to be more efficient, particularly with debtor management and cashflow.

"Billers are aware that the payments industry has been slow to provide alternatives, particularly around fee structures and the cost of implementation. All of which can have dramatic impacts on their bottom line. We believe that by providing what a business and their customers want they will ultimately benefit", concluded Mr Johnston.

As the RBA works towards releasing the findings of their Strategic Review of Innovation in the Payments System at the end of 2011, which will then need to be implemented by the regulators and the banks, businesses will continue to seek innovation through innovators like Flycke.