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More than a year after securing $4.7 million in a seed funding round to support its rollout, Sydney-based account-to-account (A2A) fintech Waave has been acquired by London-based global payments company Banked for an undisclosed sum.
Founded in 2022 by Ben Zyl, Mark Connolly and Peter Traianou, who collectively have decades of experience working for the likes of PayPal, AfterPay, NAB and Adyen, Waave is a payment app that allows customers to manage their finances from one place.
A2A payment refers to account-to-account transactions where money is transferred directly between two bank accounts without using a third-party service.
The company's main product, Pay by Bank, is one of the first payment platforms that uses Open Banking for both businesses and consumers. Open Banking allows users to share their financial data with approved third parties, as regulated by the Australian Competition & Consumer Commission (ACCC).
Pay by Bank charges a flat fee per transaction, making it up to 80 per cent cheaper than traditional card payments for an average cart value of $100. It eliminates the need for passwords, using FaceID and TouchID for transaction approval instead.
Waave works with a range of companies including cashback platform ShopBack, not-for-profit hospital group Epworth HealthCare, online grocer Harris Farm Markets, and retailers such as Temple & Webster (ASX: TPW), Baby Bunting (ASX: BBN) and Princess Polly.
“This is a milestone moment for Pay by Bank in Australia. We share Banked’s commitment to bring payments out of the dark ages and create a globally accessible payments network that is good for everybody,” Waave co-founder and CEO Ben Zyl says.
“We are immensely proud of what our team has built and look forward to becoming an expanded team alongside Banked to lead payments innovation in this country.”
Other retailers implementing Waave include Oz Hair and Beauty, Mr Vitamins, PUSHAS, Eva Mattresses and Chemist Warehouse – which is backing the startup through its franchisor CW Retail Services. Chemist Warehouse has plans to activate the Pay by Bank solution in its online and in-store operations by early 2025.
Another key supporter includes US-based private investor Quadrant Capital Partners. According to ASIC documents, the last total amount paid for ordinary shares in Waave was $5.3 million.
“We’re excited to see Waave join forces with Banked and we’re thrilled to be at the forefront of this payments revolution. For a business like ours, where cost and consumer choice is important, the ability to reduce transaction fees with a secure, real-time payment option is game-changing,” says Chemist Warehouse CEO and founder Jack Gance.
“I believe it is an important responsibility to our customers to ensure that the best user experience is developed for this new technology and we look forward to working with Banked as they continue to expand this innovative product in the Australian market.”
Banked operates globally with offices in Palo Alto, London, Melbourne, and Vilnius. Its flagship product, Pay by Bank, is live in the US, Europe, the UK, and Australia. The company claims to have 90 per cent bank coverage across the UK and Europe.
The acquisition of Waave comes after Banked recently entered into the Australian market through a partnership with NAB. In late 2022, the company raised more than $15 million in a Series A extension round led by global software investor Insight Partners. It also received backing from Citi and NAB Ventures.
The extension came as a result of an oversubscribed Series A earlier in 2022 that was led by Bank of America. It also brought the total investment raised to date to $50 million-plus and included the participation of new global investors supporting the company’s expansion into new geographies.
At the time of the raise, Banked was close to having almost 100 staff.
“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,” Banked CEO Brad Goodall says.
“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.
“We’re excited to welcome Waave to the Banked group and continue driving the adoption of real-time payment solutions across Australia and beyond.”
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