MYOB looks at Trade Me integration in push towards e-commerce network
By Paul McBeth
Aug. 31 (BusinessDesk) - MYOB, the payment solutions software firm, is looking at ways to integrate its services with online auction site Trade Me as it works to build an easily accessible e-commerce community.
The Australian company, which services between 60 percent and 70 percent of the New Zealand accounting market, wants to grow and integrate its existing suite of accounting and payroll services with external partners, including Trade Me, to build a web-based business community that can be accessed through the company's portal. That could add a range of services from forecasting and budgeting to supply chain and inventory management to customer sales.
New Zealand general manager Julian Smith told BusinessDesk they've been exploring ways to create a seamless platform between MYOB’s accounting and payroll services and Trade Me’s auction site.
While MYOB looks to build an online business community using its portal, Trade Me has been looking at ways to encourage foreign retailers to list their products on the auction site. Building a relationship with Australia’s MYOB would broaden its exposure across the Tasman.
Any add-on applications to MYOB would be the next step as it aims to move accounting and payroll customers from desktop software and into cloud-based applications as New Zealand firms grow more comfortable with the shift in technology.
Chief executive Tim Reed said MYOB has built the volume of customers on its cloud-based 'LiveAccount' service by 250 percent this year.
Small businesses have been reluctant to ditch desktop based software due to fears of losing data, with about 14 percent identifying themselves as using cloud-based applications, he said. MYOB mitigates that by backing up its cloud services with desktop software.
Reed said he's optimistic about the growth opportunities on this side of the Tasman, as "40 percent of businesses in New Zealand don’t' use any type of accounting solution."
In June MYOB and Westpac Banking offered free websites to local businesses for the next year in a bid to lift the nation's online presence and provide new distribution channels for small and medium-sized enterprises. Since then some 6,000 businesses have taken up the offer of a free website.
Last year, US private equity firm Bain Capital bought a majority stake in MYOB for a reported A$1.2 billion from buyout firms Archer Capital and HarbourVest Partners. MYOB management retained their shareholding in the company.