The company is working on a version of its conventional PIN-secured debit card payment system for online purchases.
Eftpos has not revealed details of the service, but managing director Bruce Mansfield said in a speech he gave at a digital payments conference in Sydney last week that the payment product was "well advanced".
"It's a bit premature, but there's a need for Eftpos to consider card-not-present (transaction) and the internet, but it needs to meet our existing safety and security standards around Eftpos," Mr Mansfield said.
The company, however, hasn't quite figured out how it will achieve that.
"We're investigating a number of options. Consumer research gives us some indications of what consumers and merchants would prefer but we're still working on that," Mr Mansfield said.
The new system would give consumers an alternative to using services like PayPal and major credit card providers.
Mr Mansfield believes the service would still be lucrative if it were limited to domestic transactions, which he said accounted for 75 per cent of Australian online payments.
Mr Mansfield said: "We may decide not to go into international online payments at all, significantly reducing the risk of fraud in a walled garden."
A report by the Productivity Commission from November last year found that online retailing represented 6 per cent of the total $12.6 billion in retail sales.
Online sales are also projected to grow by 10-15 per cent a year over the next three years.
Eftpos is also planning a major software upgrade for point-of-sale terminals that will help it introduce chipped cards. The new cards will let the company challenge the credit card providers in contactless payments. Eftpos expects to issue the new cards from next year.
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