NAB aims to fast-track merchant payments

NAB is aiming to fast-track Australian merchants adopting and integrating account-to-account (A2A) payments solutions via its partnership with London-based fintech company, Banked. 

Through the partnership, the major bank is looking to uplift the use of ‘Pay by Bank’ technology, backed by Australian Payments Plus’ (AP+) PayTo services. 

This is expected the new system will make it easier for traders to offer more choice and control in how they pay by addressing a range of scenarios for merchants, including online payments, scheduled recurring payments with fixed or variable amounts, and split payment amounts.

The first round of NAB business customers are expected to go live with A2A payments in the first half of 2024 and will consist of a variety of industries spanning e-commerce, retail and non-bank lenders.

The bank’s investment arm, NAB Ventures first participated in Banked’s Series A funding round extension in 2022, with NAB contributing to an additional $15 million investment alongside Citi Ventures and Insight Partners.

Shane Conway, NAB executive transaction banking and enterprise solutions told Digital Nation “Our partnership with Banked allows us to bring more modern, cost-effective and faster payment solutions to our clients.

“The existing security features embedded in NAB’s digital banking systems coupled with the robust industry infrastructure built via AP+ can give both merchants and consumers confidence that A2A payments are both safe and reliable.

“Since the introduction of the New Payments Platform (NPP) in 2018, NAB has been working tirelessly to bring the new payments technology to the market with an initial focus on enabling PayTo functionality for consumers. 

Conway said that today, “NAB processes around 40 percent of all A2A payments via NPP, with more than 7 million consumer accounts enabled to receive PayTo agreements via NAB’s mobile and internet banking.”

He added NAB’s partnership with Banked “marks the expansion of our real-time payments offering”.

“We’re thrilled to be giving merchants and businesses across a range of industries the ability to provide a more seamless payment experience to their customers using A2A functionality,” Conway said.      

Brad Goodall, Banked co-founder and CEO told Digital Nation, "NAB’s established presence in the market and a deep understanding of merchants' needs coupled with Banked’s technology provides greater access to businesses looking to expand their A2A payment capabilities. 

“Combined with Banked's best-in-class customer experience, this partnership will drive merchant adoption of our Pay By Bank A2A payment service, offering consumers a smarter, more cost-effective, and faster alternative to current payment methods.”

Goodall added Banked “building with NAB ensures a focused commitment to security and compliance along with bank-grade levels of consumer protections." 

Katrina Stuart, general manager for business payments at AP+ said, “I am excited for this partnership between NAB and Banked.

“This is a testament to the NPP attracting international organizations with experience in multiple markets with real-time payments, and the appeal of PayTo, our digital payment solution that offers customers more visibility and control over their payments.

“The outcome of these two organizations working together will only increase the strength and authority of Australian payments on the global stage of innovation,” Stuart said.