Issue 48: Waave acquired and ANZ Plus makes headway
We have seen yet another acquisition, with Waave being acquired by Banked. Hopefully, this will be a positive move for the industry, as Waave focused on taking on the credit card payment schemes that dominate the Australasian payments market. ANZ has also released some data on account aggregation takeup for ANZ Plus account holders. While the numbers are small, they are moving in the right direction. And it’s good to see a Big 4 bank looking at the CDR positively.
I’d love to hear your thoughts on this newsletter—your feedback will help me improve!
Fintech Waave exits in acquisition by UK payments platform Banked
Banked, a global payments platform, has acquired Waave, an Australian fintech offering a low-cost direct debit solution utilizing the Consumer Data Right (CDR) framework. The acquisition, finalised for an undisclosed amount, comes less than 18 months after Waave’s launch, following a $4.7 million seed investment in April 2023.
Waave, co-founded by Ben Zyl, Mark Connolly, and Peter Traianou, is Australia’s first Open Banking payment platform that serves both B2B and B2C markets. It integrates with all Australian banks, allowing customers to securely link accounts through a simple, one-time process without entering card details. This technology is 80% cheaper than credit card payments and has gained traction with local retailers like Harris Farm Markets and Baby Bunting.
Banked’s acquisition strengthens its presence in the Australian market, particularly with its Pay by Bank service, developed in partnership with NAB. Chemist Warehouse, an investor in Waave, plans to launch this payment solution for consumers in early 2025. Banked CEO Brad Goodall emphasised the strategic importance of Waave’s technology in their mission to build a global payments network.
Waave’s CEO, Ben Zyl, and Chemist Warehouse CEO, Jack Gance, expressed optimism about the acquisition’s potential to innovate and expand real-time payment options in Australia.
Article link: Fintech Waave exits in acquisition by UK payments platform Banked
Open banking limps to life with ANZ customers seeking full picture
This AFR article discussed ANZ’s recent announcement that it used the Consumer Data Rights (CDR) to pull account data for 15,000 customers from other banks into its ANZ Plus platform. This move allows users to view all their financial data in one place using ANZ’s app. The author believes this uptake indicates some demand for the government-backed data-sharing scheme, which had faced criticism earlier due to low usage.
Initially, users can view accounts like savings, credit cards, and loans from other banks. With broader permissions, ANZ plans to provide personalised budgeting and financial tools. Once the federal government's new powers are enacted, future features could include easy account switching and product management.
Despite scepticism and low adoption rates observed in similar efforts by other banks like Commonwealth Bank (CBA) and ING, ANZ remains optimistic about consumer engagement. The bank has seen growth in its customer base and deposits but has introduced conditions for maintaining interest rates, aiming to increase usage alongside its new features.
ANZ is also exploring further expansions to include superannuation, insurance, and energy accounts as part of the broader rollout of the CDR.
It will be interesting to see how this plays out for ANZ. One key reason account aggregation has failed is the inability to request transfers or make payments. Action Initiation will eventually solve this, but it will take time.
Article link: Open banking limps to life with ANZ customers seeking full picture
The Registry gets a refresh
The Registry has had a refresh to allow consumers to understand better the software products they may be using.
It may not be that easy to use, as you can’t search for the Software Product itself again, and each ADR controls the descriptions. So you get some very long ones, like NortonLifeLock.
Or very short, like Westpac’s Application Verification, but when I wrote that description, I didn’t know it would ever go public!
At least the public can now get a description of what the Software Product’s purpose is.
Registry Link: CDR Registry
New Software Products
Biza Pty Ltd
DRSP000304 - HAT POWERS US PTY LTD (Automised Energy)
Product Description: Automated Energy securely sues CDR data and product references to automatically and continuously help Aussie households optimise their household electricity options, saving time, money and energy.
CDR Representative Arrangements
Biza Pty Ltd
WHAT POWERS US? PTY LTD
Start date: 1/08/2024
Notes: Energy management app.
Website: https://www.automised.energy/