CBA has acquired a 20% investment in Paypa Plane, an Australian fintech that has developed a platform that allows companies to request and accept digital payments from consumers.
Paypa Plane makes use of the New Payments Platform’s PayTo functionality, which is characterised as “a new, digital approach for merchants and enterprises to initiate real-time payments from their customers’ bank accounts” in documentation.
PayTo is described by CBA as a “method for businesses to deliver real-time direct debit payments to their consumers.”
The bank wants to leverage its ownership in Paypa Plane and the resulting partnership agreement to “accelerate [the] delivery of PayTo for our business clients,” according to Mike Vacy-Lyle, group executive business banking.
“We aim to assist our business clients provide great payment experiences that satisfy their customers, maximise their ability to be paid, and spend less time on administration and collections – giving them more time to focus on developing their businesses,” Vacy-Lyle explained.
Vacy-Lyle noted that the collaboration with Paypa Plane “would enable us to innovate quicker and better adapt to the demands of our consumers.”
According to CBA, Paypa Plane’s platform establishes a digital relationship between a business and a payer “that enables total transparency over the life of their payment arrangement.”
“It may give considerable cost savings and cash-flow certainty to enterprises, as well as in-built compliance and customer service, [while] offering better self-management and transparency to customers or payers.”
