CBA has taken a 20 percent stake in Australian fintech Paypa Plane, the creator of a platform that helps businesses request and receive digital payments from customers.
Paypa Plane uses the New Payments Platform's PayTo capability, which is described in documentation as "a new, digital way for merchants and businesses to initiate real-time payments from their customers’ bank accounts."
CBA characterised PayTo as a "way for businesses to offer real-time direct debit payments to their customers."
The bank intends to use its stake in Paypa Plane and an ensuing partnership arrangement to "accelerate [the] delivery of PayTo for our business customers", its group executive business banking Mike Vacy-Lyle said in a statement.
“We want to help our business customers offer quality payment experiences that delight their customers, maximise their ability to get paid, and spend less time on administration and collections – leaving more time to focus on growing their businesses," Vacy-Lyle said.
Vacy-Lyle added the partnership with Paypa Plane “will help us to innovate faster and better respond to our customers’ needs.”
Paypa Plane’s platform creates a digital link between a business and a payer "that provides complete transparency over the life of their payment arrangement," CBA said.
"It can provide significant cost savings and cash-flow assurance to businesses, as well as in-built compliance and customer care, [while] for consumers or payers it offers greater self-management and transparency."