Two Australian start-ups are working together to enable merchants to avoid dishonour fees and deliver a frictionless experience to customers. Split is using the Basiq Open Banking Platform to enable customers to choose to share their banking information to simplify bank transfers and create a seamless payment experience.
According to the Reserve Bank of Australia, Direct entry (direct debit and direct credit) transactions grew by 8.6% in volume in 2016 to 3.5 billion transactions. Direct debit payments make up approximately 1.08 billion transactions per year with up to 20% failing for reasons such as insufficient funds or incorrect account details. This means that Australian merchants waste approximately $432 million in dishonour fees a year. That doesn’t even account for administration costs in dealing with failed payments and involuntary churn due to dishonours.
With Split, by ensuring that the customer has enough money in their account, and by automatically verifying that the account information is correct before the transaction is made; it enables them to have 99.8% confidence that all direct debits will be successful. Plus, the merchant can preemptively communicate with the customer before a payment fails if they don’t have sufficient funds. This is a revolutionary way to solve a problem which has been 'plague' to the payment industry from the beginning.
About Basiq…With the introduction of open banking, financial services organisations will need to provide their data through standardised APIs, which is possible using Basiq's platform. Basiq partner with banks and fintechs to find innovative ways to do more with valuable insights gained through customer financial data.
About Split…Split is a payment fintech that simplifies bank transfers. The Split payment platform allows merchants to create a seamless, customer-centric payment experience for their customers. Splits API connects to a merchant’s existing accounting and POS system to enable them to automatically collect payments from their customers.
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