Investment notes: Paypa Plane

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Nic Gill
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We are excited to announce our investment in Paypa Plane alongside Queensland Investment Corporation (QIC), Cuscal and Mastercard! 

Paypa Plane is shaking up the financial industry by providing white-label payment solutions to banks, giving them access to the PayTo Network in Australia. They offer a range of features to banks and their clients, including lightning-fast processing times, unparalleled control over subscriptions, top-of-the-line security, and an enhanced customer experience, transforming the way we do business.

What’s the PayTo Network, you ask?

The Reserve Bank of Australia has mandated that the Big Banks implement NPP Australia’s PayTo facility by April of this year. The system enables customers to manage recurring payments and take more control over their bank accounts, providing an alternative to card payments and reducing payment costs for retailers. It’s an announcement that has created an urgent need for payment solutions that comply with the new system’s requirements.

In short, PayTo is a new payment system, giving customers more control and visibility over their payments, and reducing the cost for billers. It’s the next iteration of Osko (BPay’s secure payment service which enables customers to send and receive real-time payments, currently used by the Big 4).

As the Reserve Bank continues to push for banks to integrate into the PayTo system, the big banks are left with a critical decision to make. They can either invest significant resources into building the technology in-house, a costly and challenging undertaking or they can opt for the simpler route of purchasing a pre-built white-label payment solution. And this is precisely where Paypa Plane’s expertise shines through, offering banks a hassle-free, ready-to-integrate payment solution.

As the first PayTo startup to hit the market, they’ve quickly proved to be the best in the market too. Let’s unpack why.

A Breakdown of Paypa Plane’s Superior Tech

Paypa Plane’s ‘Smart Payment Agreements’ technology unlocks the additional functionality of PayTo. Their platform will allow banks to provide business customers and consumers with payment methods that offer more protection and flexibility than existing bank transfers and ongoing payment systems. Features we’re excited about include:

  • Smart payment agreements connect businesses and payers, extending the payment experiences made possible by PayTo to traditional credit/debit and direct debit payment methods. This technology transforms how businesses initiate secure, real-time, one-off, and recurring payments by providing direct access to core banking applications.
  • Events-Based and Events-Driven Architecture: the entire system is designed to respond to multiple layers of users – logging events and capturing them in a way that allows secure, robust and appropriate control for everyone – from banks to enterprises and businesses to payers. Events driven architecture is a challenge to build but means that Paypa Plane’s system will be future proof and incredibly scalable for many years to come.
  • Fully integrable with businesses’ third-party cloud accounting and payroll providers to initiate real-time payments on their behalf, directly from their bank account. Real-time notifications are supported by APIs, ensuring that they are promptly informed of successful payments.
  • Extensive data capture for businesses and banks to give further insight into how their customers are acting and what trends are being picked up on for specific products and services.

In essence, Paypa Plane simplifies and enriches the consumer and vendor payment experience. 

Unique Go-to-Market & Differentiation Amongst Competitors 

From the beginning, Paypa Plane impressed us with its unique approach to the PayTo Market. Unlike other emerging PayTo providers, Paypa Plane has chosen to distribute its product through banks (instead of through businesses), allowing banks to leverage the trust and credibility that they have with their customers, thereby driving viral growth. 

With proprietary software designed to integrate seamlessly with existing bank infrastructure, this is truly an enterprise-ready technology. In fact, Paypa Plane already counts Commonwealth Bank and a number of large Australian banks and payment providers amongst its customers, who, in turn, will provide the new functionality to their millions of account holders. 

Jonathan Grant & Simone Joyce, founders of Paypa Plane

Founders First

Spearheading this ambitious, game-changing product is Simone Joyce  & Jonathan Grant, a remarkable founding duo, with an unwavering determination to succeed. Their entrepreneurial spirit, coupled with their strong work ethic, has driven them to build a truly innovative product. 

What’s more, they possess a deep knowledge and understanding of the market and have a clear vision of where they want to take Paypa Plane. We believe that these qualities, along with their exceptional leadership skills, are what enable them to drive the company forward and create significant value for their customers. And we’re not alone. Paypa Plane has captured the attention of some major financial heavyweights, securing strategic investment from Commbank, Tyro Payments, Queensland Investment Corporation (QIC), Cuscal and Mastercard

Overall, we are thrilled to be investing in Paypa Plane. With its superior technology and unique approach to the market, Paypa Plane is well-positioned to capitalise on the emergence of the PayTo market in Australia. Led by the talented and experienced founding team, we have full confidence in the company’s ability to drive significant value for its customers. We are excited to watch as Paypa Plane continues to disrupt the payments industry and shape the future of banking in Australia.

Investment announcement – AFR

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