A new alternative payment method to traditional cards allowing customers to pay directly via their bank has launched following a $4.7million seed backing. Waave now becomes the first consumer payments business to use open banking in Australia.
Following its launch, Waave is aiming to reinvent the world of payments with its cheaper, more secure way to accept and make payments in Australia. The payments firm explained that its ‘Pay by Bank‘ product could reduce merchant payment fees by more than 80 per cent.
Three Australian payments experts: Ben Zyl, Mark Connolly and Peter Traianou are launching the business. The trio boast decades of experience between them; having spent time at organisations including PayPal, Adyen, AfterPay and NAB.
Waave also has investment backing from the likes of Morten Belling of Menulog and eCommerce pioneer Paul Greenberg, closing out a seed round at $4.7million. Chemist Warehouse founder Jack Gance has also joined the organisation as an advisor.
Co-founder Ben Zyl explained why he believes new payment solutions are needed: “We believe the payment industry is archaic and the way we pay today is clunky and outdated. 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.”
Cheaper payment options
Waave Pay by Bank charges a flat AU$0.28 transaction fee and provides instant authorisation, faster funds settlement and no dishonour charges or chargebacks. The payments product works across all Australian banks, with customers guided through an easy and secure, one-time sign-up process enabling them to connect to their bank and make payments both online and in-store.
Waave will release its services to key enterprise eCommerce customers in the first half of 2023. Waave also integrates with an extensive partner network including Shopify Plus and other major eCommerce platforms. The team believes there is scope to grow internationally alongside increased uptake of Open Banking globally.
Co-founder Mark Connolly offered his view on the new payment technology: “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. It’s our flagship product allowing exceptionally low costs to the merchant, security, ease, and control back to the customer”.
Paul Greenberg, investor, advisor and founder of the National Online Retailers Association (NORA), also commented: “Waave is a champion for merchants at a time when they’re feeling cost crunches from every direction. Waave will also be welcomed by consumers – a simple, convenient, and secure way to pay.”
