Open banking payments fintech Waave lands $4.7 million Seed round

Waave, a fintech that uses open banking to build a direct debit alternative to card payments, has raised $4.7 million in a Seed round.

The round was supported by a number of prominent figures, including Menulog CEO Morten Belling, eCommerce pioneer Paul Greenberg and Chemist Warehouse founder Jack Gance, who is joining the fintech as an advisor.

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 claim the title as the country’s first B2B and B2C payment platform to use Open Banking – the first rollout of the Consumer Data Right – allowing customers to pay directly through their bank.

Zyl said Waave’s flagship product Pay by Bank aims to reinvent acceptance and making payments in the lowest cost, easiest and safest way possible.

“We think the payments industry is archaic and the way we pay today is clumsy and outdated,” he said.

“People have become complacent with card dominance – businesses shouldn’t pay exorbitant fees to receive payments and customers should have full control and visibility over their money. We are 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 co-founder Mark Connolly said Pay by Bank has the potential to cut merchant fees by up to 80%, with the fintech charging a 28 cent transaction fee, while delivering instant approval, faster settlement of funds and no dishonor fees 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 that allows exceptionally low costs for the merchant, security, ease of use and control back to the customer.”

Paul Greenberg, who founded the National Online Retailers Association, said Waave is a champion for sellers under pressure from cost pressures.

“Waave will also be welcomed by consumers – a simple, convenient and secure way to pay,” he said

“Many of us want to ‘spring clean’ our wallets. Getting rid of the high cost, underused payment solutions is simple and effective. Waave makes this possible by cutting out the middlemen.”

Following the initial capital investment, Waave plans to roll out its services to key enterprise e-commerce customers, both online and in-store, by June.

Co-founder Pete Traianou said they are also looking at global expansion, as open banking is adopted overseas, with the platform integrated with a partner network that includes Shopify Plus and other major e-commerce platforms.

“We will adapt, evolve and expand our platform ecosystem and products, but our core purpose will always come back to improving the connection between consumers and businesses,” he said.