The bank's MobilePay app will see customers authorise transactions from their linked Visa credit or debit account simply by tapping their compatible smartphone at a Visa Paywave terminal.
The move makes the mutual the first bank in Australia, outside the big four, to develop and launch its own mobile payments solution in-house.
Heritage CEO John Minz said the MobilePay system offers a number of security and simplicity advantages.
“Our MobilePay system is great news for customers as it provides a quick, simple and secure way for them to use their mobile phone to authorise payments,” he said.
“Our solution works by creating a ‘virtual’ copy of your Visa debit or credit card on your phone, with a completely different number. You can then tap your phone at Visa Paywave terminals to make transactions from your linked account.
“Receiving a completely separate number means you keep your existing credit or debit card secure, and you don’t need to type in any personal information like card numbers, card verification numbers or a PIN.”
MobilePay is available for users with an Android 4.4 with Kit Kat software and above, NFC functionality, and a Visa credit or debit account with Heritage.
The tap and go feature works for transactions up to $100, with transactions above that amount requiring users to enter a PIN.