The National Australia Bank (NAB) has launched a new Pay by Bank capability in partnership with fintech company Banked. With this technology, consumers can make payments directly between business and consumer bank accounts, cutting out the risks when swapping bank card details, account numbers, and other personal details.
With Pay by Bank, the bank hopes to simplify the process for merchants and avoid “costly card surcharges,” and keep customers safe from scammers.
According to Finextra, sellers can send customers a PayTo Agreement to initiate payments and refunds “directly from their banking app.” It solves several headaches for merchants, one being scheduled recurring payments with fixed or variable amounts. It also enables merchants to split payment accounts.
Banked’s CEO Brad Goodall says: “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.”
Meanwhile, Shane Conway recognizes that Australians continue to face economic headwinds, but this technology “will offer an economic benefit for merchants – in particular retailers.” He believes this can potentially “lower the cost of doing business.”
The bank also believes it contributes to “helping [to] mitigate scams and fraud risk,” which NAB takes very seriously.
NAB focuses on bank safety
The Digital Banker recently named NAB the ‘Best Retail Bank for Digital CX in Australia.’
NAB chief digital Sujeet Rana says in the last year; the team has worked hard on releasing “new features” into the digital banking channels. They focus on “simplifying the banking experience” while making sure customers feel safe while doing online shopping.
“The work – including payment alerts and removal of links from texts – is helping to reduce the impact of scams on customers, which is the most rewarding part,” says Rana.
A modern banking solution
Australian-born Goodall founded Banked in 2019. He has been making big waves in London’s tech industry. In 2020, he built a payment network that competes with Visa and MasterCard.
Earlier this year, speaking to the media, he assured customers that “it’s not about killing cards.” Banked is hoping to revolutionize global payments by offering a solution to personal identity theft, moving away from the traditional pay methods. Banked’s technology reduces many risks with biometric authorization and real-time fund transfers.
But it’s a win-win situation for businesses too, with lower fees.
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
