Westpac backs mx51 to tackle global payments invasion

Westpac Banking Corp is backing a new payments spin-off – mx51 – to help it fend off an invasion by global payments software companies threatening banks’ profitable lending and deposit relationships with merchant customers. 

mx51 has been created out of Assembly Payments, in which Westpac is also an investor, alongside its venture capital fund Reinventure Group. The deal points to the battle between major banks and a growing number of giant, global fintech players offering enhanced payments services to retailers across the economy.

 

These disrupters include Adyen, Square, Stripe, WorldPay and Braintree; through a combination of hardware and software, they are creating cheaper, better business management services that Westpac is seeking to emulate.

 

mx51, which is being taken to market by Westpac under the Presto brand, will also help the bank defend its turf against ASX-listed Tyro.

 

It is using Tyro’s approach of “open” technology architecture, allowing the software to be integrated with a broad range of existing, retail “point of sale” (POS) systems. This contrasts with Commonwealth Bank’s more restricted development philosophy adopted by its Albert payments terminal.

 

The new system will also help merchants accept a wide range of payments including Afterpay and Zip.

 

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Source: Westpac backs mx51 to tackle global payments invasion