NAB & Banked to launch 'Pay by Bank' for Australian shoppers
The Australian banking industry will witness the launch of Pay by Bank for its shoppers, following National Australia Bank (NAB)'s partnership with global fintech company Banked. The alliance promises a unique transaction method that complements the existing line-up of available payment modes, giving consumers more control and flexibility in payments.
The Pay by Bank technology provides near-instant transactions and helps avoid surcharges, an issue that has been a focal point within the Australian payment industry. In the next two months, the initial set of NAB merchants are poised to operationalise account-to-account payments, covering various sectors like ecommerce, retail, and non-bank lenders.
Brad Goodall, CEO of Banked, voiced his optimism regarding the prospect of account-to-account payments in Australia, welcoming the collaborated strategic initiative with NAB. He emphasised that the union of Banked's international prowess and strategies with NAB's local market experience formed the cornerstone of the breakthrough partnership. "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."
NAB executive Shane Conway also showed high enthusiasm for the venture, expressing belief in the forthcoming benefits encompassing different use-cases. "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 mitigate scams and fraud risk. It's a win-win."
The expansion of PayTo (Australian Payments Plus services) in Australia is a significant step towards modernising the payment methods available to merchants. Pay by Bank capabilities will allow vendors to send PayTo agreements to their customers and initiate payments and refunds according to their PayTo accords, serving various merchant scenarios such as online payments, fixed or variable scheduled recurring payments, and split payment amounts.
The General Manager of Business Payments at Australian Payments Plus, Katrina Stuart, is also visibly energised by this partnership. "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 alliance will result in A2A payments going live for the first set of NAB business customers in the first half of 2024. These customers will represent diverse industries including ecommerce, retail, and non-bank lenders. The collaboration promises to shape the region's digital payments future while giving Australians more choices and control in payments, and boosting the use of Pay by Bank technology for routinal transactions.
