In a significant move within the financial technology landscape, Banked, a prominent global Pay by Bank provider, has announced the acquisition of Waave, an Australian payment technology firm. This strategic acquisition is set to enhance Banked's position in the rapidly evolving real-time payments market in Australia and comes with a promising partnership with Chemist Warehouse, one of the country's leading retail brands.

Strategic Acquisition Enhances Market Position

The acquisition of Waave underscores Banked's commitment to building a global Pay by Bank platform. Waave's innovative approach to developing a superior Pay by Bank solution, particularly through its collaboration with Chemist Warehouse, played a critical role in the decision to acquire the firm. As consumer brands increasingly drive demand for alternative payment methods beyond traditional banking systems, combining Waave's local expertise with Banked's international capabilities aims to create a robust end-to-end solution for Australian consumers and businesses alike.

Banked’s recent entry into the Australian market, facilitated by a partnership with NAB, has been part of a broader strategy to accelerate the adoption of account-to-account payments. This acquisition further solidifies that strategy, positioning Banked as a leader in Australia’s Pay by Bank landscape.

Expanding the Pay by Bank Network

The move to acquire Waave is a vital step towards establishing a truly global Pay by Bank network. As Pay by Bank solutions gain traction worldwide—evidenced by major players like Walmart announcing similar services—the timing of this acquisition reflects the growing global demand for real-time payments. Banked aims to leverage its advanced payment technology and consumer insights to cater to the unique needs of the Australian market.

Australia has been identified as a key market for Banked, and the company is already collaborating with various banks and merchants to develop a comprehensive Pay by Bank solution. A particularly noteworthy partnership is with Chemist Warehouse, which is gearing up to implement a seamless Pay by Bank solution for its online and in-store operations, set to launch in early 2025.

Chemist Warehouse: A Key Partner in Innovation

The innovative work between Chemist Warehouse and Waave to create a low-cost, secure consumer experience for Pay by Bank transactions was a decisive factor for Banked in its acquisition strategy. Chemist Warehouse is not only a major player in the retail space but also a strategic partner in shaping consumer payment experiences in Australia.

Jack Gance, the Founder and CEO of Chemist Warehouse, expressed enthusiasm for the collaboration, emphasizing the importance of cost and consumer choice in the current market. The ability to reduce transaction fees while offering secure, real-time payment options is a game-changer for businesses like Chemist Warehouse, which are committed to enhancing customer experiences.

Strengthening the Payment Infrastructure

Brad Goodall, CEO of Banked, articulated the strategic importance of the acquisition, stating that it represents a significant advancement in the company's mission to expand its global payments network. He noted that Waave's technology aligns seamlessly with Banked's vision, enabling the integration of strengths from both organizations to better serve a diverse range of Australian merchants and consumers.

Waave’s platform, known for its real-time payment capabilities, offers transaction costs that can be up to 80% lower than those associated with traditional credit card payments. This economic advantage, coupled with an intuitive user experience, has made Waave a preferred choice among local retailers, including Harris Farm Markets and Temple & Webster.

Ben Zyl, CEO and Co-founder of Waave, described the acquisition as a pivotal moment for Pay by Bank in Australia, underscoring the shared commitment between Waave and Banked to modernize payment systems and create a more accessible global payments network.

Future Outlook for Real-Time Payments in Australia

The acquisition comes at a time when there is a notable shift toward real-time payments globally, with many merchants expressing the need for lower payment fees. Walmart’s anticipated launch of Pay by Bank in the US and Visa's recent announcement of its account-to-account payments strategy in Europe and the UK further emphasize the momentum behind this payment model.

Banked’s partnership with Waave and Chemist Warehouse not only positions it to capture a significant share of the Australian payments market but also highlights a broader trend toward adopting innovative financial technologies that prioritize consumer experience and operational efficiency.

The acquisition of Waave by Banked marks a pivotal development in Australia’s financial technology sector, setting the stage for enhanced payment solutions that benefit both consumers and merchants. As the landscape for real-time payments continues to evolve, Banked is poised to lead the charge, leveraging strategic partnerships and advanced technologies to deliver innovative payment experiences that meet the demands of today's market. With plans to launch new capabilities in early 2025, the collaboration with Chemist Warehouse could revolutionize how Australians transact, ensuring a seamless and secure payment journey for all users.