BNZ, National Australia Bank’s New Zealand subsidiary, is set to deploy an Open Banking innovation first in NZ, announcing a new partnership with a local paytech that will enable customers to request payments from their peers.
The new API agreement between the bank and the recently launched fintech, Volley, will enable users to prompt their BNZ bank-using peers for payment and – in another NZ first – make direct peer-to-peer payments between bank accounts.
The capability will then enable BNZ users, on the receiving end of a Volley payments request, to pay via a single tap in their banking app.
How it works
Using the Volley app, users enter the payment amount requested and the purpose of the payment. The app then generates a payments request link, which can be shared via a messaging service.
Once the receiver clicks on the link, they will be directed to their bank app (currently BNZ only) to pay, with payments sender details entered automatically.
The Volley app will then send payments requestors a notification as soon as their peer has paid.
Karna Luke, BNZ’s executive of customer products and services, said the capability, enabled through this new collaboration, “will bring a new ease and simplicity to our customers’ financial lives”.
“Whether it’s splitting bills in a flat, at a restaurant, or on a night out with friends, this will help take the hassle out of sharing payments, while ensuring our customers’ money is safe through our secure API,” he said.
James McCann, co-founder of Volley, noted that the service does not rely on “screen scraping” or “uncontracted APIs”, and does not require an intermediary digital wallet service for users to execute payments.
“We’re incredibly proud to be working with BNZ, and this agreement allows us to bring the power of Open Banking to individuals to make peer-to-peer payments for the first time in New Zealand.”
He added that the service will be rolled out with more partner banks “over the coming months as more Open Banking APIs come to market”.
Volley is currently in beta testing, and is expected to launch later this year. The fintech is also set to launch a separate business offering.