Banked Bolsters Australian Pay-by-Bank Foothold With Waave Acquisition

Pay-by-bank provider Banked has acquired Australian payment technology firm Waave.

The deal gives Banked a deeper foothold in Australia’s pay-by-bank sector while also establishing a partnership with local retailer Chemist Warehouse, the company said in a news release Thursday (Oct. 10).

“Acquiring Waave is a major step forward in our mission to expand our global payments network. Australia is a key market for us, and Waave’s technology and market presence align perfectly with our vision,” said Brad Goodall, CEO of Banked. “By acquiring Waave’s Pay by Bank solution and integrating its product’s strengths with our own best-in-class product, we’ll gain access to the great brands already benefiting from their innovative payment technology.”

The release noted that the acquisition follows Banked’s recent entry into Australia with its partnership with National Australia Bank (NAB).

“With Pay by Bank gaining traction globally — highlighted by Walmart’s recent announcement to launch the solution in the US — Banked is seizing the opportunity to bring its advanced payment technology and consumer insights to the Australian market,” Banked said.

Writing about that partnership last month, PYMNTS wrote: “Walmart’s scale and installed base of loyal customers may move the needle on instant payments in general, and instant bank payments specifically.”

Research by PYMNTS Intelligence estimates that up to 30% of U.S. consumers have Walmart+ subscriptions, meaning they are arguably already pre-disposed to shop at the retail giant for their everyday needs, and to do so using digital options.

Meanwhile, PYMNTS wrote earlier this week about pay by bank (also known as account-to-account payments or bank-to-bank payments) use in the B2B space, as this method allows suppliers to rest assured that they’ll be promptly paid for goods or services.

“That growth from the commercial realm would come as separate PYMNTS Intelligence data have shown that 36% of consumers use pay by bank, so some cross-pollination may speed growing use of more direct options,” that report said. “Consumers are, after all, businesspeople, and businesspeople are also consumers.”

Announcements through the past several weeks have underlined the appeal and the growing availability of the direct payment method, such as Bank of America’s launch of Virtual Payables Direct, a B2B payment solution.