Fintech Waave exits in acquisition by UK payments platform Banked

Global payments platform Banked has tapped into Australian real-time payments with the acquisition of Waave, a fintech using the consumer data right (CDR) to offer a lower cost direct debit alternative to card payments.

The sale, for an undisclosed sum, comes less than 18 months after Waave launched following a $4.7 million Seed round in April 2023.

The M&A deal bolster’s Banked’s recent push into the Australian market with its Pay by bank merchant service in partnership with NAB.

Waave, cofounded by Ben Zyl, Mark Connolly and Peter Traianou, was the first both B2B and B2C payment platform use case of open banking in Australia. It works across all Australian banks, with customers guided through an easy and secure, one-time sign-up process, enabling them to connect directly to their bank – without needing to divulge and enter card details.

Waave’s Seed raise was backed by the likes of Menulog boss Morten Belling, eCommerce pioneer Paul Greenberg and Chemist Warehouse founder Jack Gance, giving the fintech a strategic partnership with the pharmacy retail chain.

Chemist Warehouse and Waave have been developing a low-cost, secure, consumer use for Pay by Bank, launching in early 2025.

Banked CEO Brad Goodall said that project was a critical factor in the acquisition.

“Acquiring Waave is a major step forward in our mission to expand our global payments network,” he said.

“Australia is a key market for us, and Waave’s technology and market presence align perfectly with our vision. 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.”

Waave’s real-time payments technology is up to 80% cheaper than the cost of credit card payments and has been embraced by leading local retailers including Harris Farm Markets, Temple & Webster and Baby Bunting.

Waave CEO Ben Zyl said the acquisition was 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,” he said.

“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.”

Gance, the Chemist Warehouse CEO as well as being a Waave investor, said they’re pleased with the deal.

“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,” he said.

“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.”