By: 16 May 2024

Big four bank and global fintech join forces to shape the region’s digital payments future

Banked and NAB partner for Pay by Bank adoption in Australia

Leading global fintech Banked and National Australia Bank (NAB) have launched a new partnership to accelerate the number of Australian merchants adopting and integrating account-to-account (A2A) payments solutions.

The partnership aims to boost the use of ‘Pay by Bank’ technology – using Australian Payments Plus’ (AP+) PayTo services – making it easier for merchants to give Australians more choice and control in the way they pay. 

Pay by Bank capability will enable merchants to send PayTo Agreements to their customers and initiate payments and refunds according to their PayTo agreements, addressing a range of scenarios for merchants such as online payments, scheduled recurring payments with fixed or variable amounts, and split payment amounts.

NAB’s established presence in the market and deep understanding of merchants’ needs coupled with Banked’s international experience, strategies and technology is set to provide greater access to businesses looking to expand their A2A payment capabilities. Building with NAB also ensures a focused commitment to security and compliance along with bank-grade levels of consumer protections including instant refund capabilities and data protection.

Brad Goodall, chief executive officer of Banked, said: “The nascent A2A payments industry in Australia presents an incredible opportunity for Banked. Local regulators have developed well-constructed mandates and the banking industry is primed for innovation, all of which sets the stage for rapid growth in real-time payments.

“Working together is the secret to success. Banked’s core value is based on partnership – we work closely with bank partners and connect with the broader fintech ecosystem – and we are very pleased to join forces with one of Australia’s top financial institutions.

“NAB, a trusted brand in the Australian banking industry with an ambitious digital banking strategy, was a natural fit as a partner to build forward-thinking real-time payment solutions. 

“Together, we’re well positioned to not only unlock, but accelerate, Pay by Bank opportunities in the Australian market. We are confident that our approach will resonate with regional businesses and consumers, setting a new standard for payments.”

Shane Conway, NAB executive transaction banking and enterprise solutions, said: “A2A payments are growing and enabling merchants to receive payments directly from their customers’ bank accounts, bringing compelling benefits for certain use cases.

“Banked’s commitment to customer-centred design is second to none and this makes them the ideal partner for NAB as we endeavour to deliver faster, simpler and better digital payment experiences for our customers.

“As Australia continues to face economic headwinds, we believe this technology will offer an economic benefit for merchants – in particular retailers – including lowering the cost of doing business, enabling differentiated customer loyalty schemes and helping mitigating scams and fraud risk. It’s a win-win.”

Katrina Stuart, general manager, business payments, AP+, commented: “I am excited for this partnership between NAB and Banked. This is a testament to the NPP attracting international organisations which have experience in multiple markets with real-time payments and the appeal of PayTo, our digital payment solution which offers customers more visibility and control over their payments.

“The outcome of these two organisations working together will only increase the strength and authority of Australian payments on the global stage of innovation.”

The first set of NAB business customers are expected to go live with A2A payments in the first half of 2024 and represent a range of industries spanning e-commerce, retail and non-bank lenders.

Fintech is hotting up in Australia, with Constantinople recently raising $33m in funding.

Image: CardMapr.nl on Unsplash

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Robert Welbourn
Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.