Waave, a fintech using open banking to build a direct debit alternative to card payments, has raised $4.7 million in a Seed round.
The round was backed by a range of prominent individuals, including Menulog boss Morten Belling, eCommerce pioneer Paul Greenberg and Chemist Warehouse founder Jack Gance, who joins the fintech as an advisor.
The fintech was founded by Ben Zyl, Mark Connolly and Peter Traianou, who have decades of experience in payments, including at PayPal, Adyen, AfterPay and NAB. The trio are claiming the title of the country’s first B2B and B2C payment platform to use Open Banking – the initial roll out of the Consumer Data Right – so customers can pay directly via their bank.
Zyl said Waave‘s flagship product Pay by Bank, aims to reinvent accepting and making payments in the lowest cost, simplest and most secure way possible.
“We believe the payment industry is archaic and the way we pay today is clunky and outdated,” he said.
“People have become complacent with card dominance – businesses shouldn’t be paying exorbitant fees to receive payments, and customers should have full control and visibility over their money. We’re here to drive change by bringing back the connection between consumers and businesses.”
The Open Banking market is predicted to be worth $48.13 billion globally by 2026, Waave works with all Australian banks.
His cofounder Mark Connolly said Pay by Bank has the potential to cut merchant fees by up to 80%, with the fintech charging a flat rate 28 cents transaction fee, while also delivering instant authorisation, faster funds settlement and no dishonour charges or chargebacks.
“Think of Waave: Pay by Bank as the new and improved direct debit for the 21st Century, using the latest technology to dramatically improve the payment experience for consumers, while significantly reducing costs for businesses,” he said
“It’s our flagship product allowing exceptionally low costs to the merchant, security, ease, and control back to the customer.”
Paul Greenberg, who founded the National Online Retailers Association, said Waave is a champion for merchants under pressure from cost crunches.
“Waave will also be welcomed by consumers – a simple, convenient, and secure way to pay,” he said
“Many of us are looking to ‘Spring clean’ our wallets. Getting rid of those high cost, underused payment solutions is simple and cathartic. Waave enables this by cutting out the middlemen.”
Following the Seed capital investment, Waave plans to roll out its services to key enterprise eCommerce customers, both online and in-store, by June.
Cofounder Pete Traianou said they also eyeing off global expansion was open banking is adopted overseas, with the platform integrating with a partner network that includes Shopify Plus and other major eCommerce platforms.
“We will adapt, evolve and grow our platform ecosystem and products, but our core purpose will always come back to improving the connection between consumers and businesses,” he said.
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