Aussie Bank Acquires Stake in Paypa to Drive Digital Payments

The Commonwealth Bank of Australia (CBA) picked up a 20% stake in FinTech Paypa Plane as part of a partnership agreement to help Aussie businesses transition to PayTo, a new digital tool from the New Payments Platform (NPP).

Launched in 2018, NPP is Australia’s open-access infrastructure for fast payments and was developed in collaboration with 14 industry organizations. More than 100 banks, credit unions, FinTechs, and other organizations use the NPP for real-time payments for consumers, businesses and government agencies, according to its website.

PayTo is a new, digital solution merchants and other businesses can tap to offer real-time direct debit payments to their customers. The goal is to innovate how bank accounts are used for payments, according to a press release on Monday (Feb. 7).

See also: New Payments Platform Australia On Creating A Forward-Looking Real-Time Payments System

“Our partnership will accelerate CBA’s delivery of PayTo for our business customers and over time, open up other new capabilities to revolutionize the payments experience for businesses and consumers,” CBA Group Executive of Business Banking Mike Vacy-Lyle said in the release.

Vacy-Lyle added that the NPP is a vital undertaking for the country’s digital landscape and individuals and businesses are reaping the benefits of real-time payments. The tie-up with PayPa Plane is another step CBA is taking to continually advance its payments network while supporting the NPP and “bring the best payments experiences to our customers.”

Read more: Australia Mulls Regulatory Roadmap for FinTechs

Paypa Plane transparently links businesses and payers directly, providing a lower cost experience that also brings cash-flow assurance to businesses, integrated compliance, customer service. Payors and customers have more control and transparency.

“Our partnership with CBA means together we can bring instant momentum to the delivery of PayTo through the combination of our technology and CBA’s customer base — an important step for the industry and the payments ecosystem,” said Paypa Plane CEO, Simone Joyce.

Joyce added that the partnership with CBA is an “important milestone for Paypa Plane” and illustrates a new chapter for both individuals and businesses for how payments are handled.