Kiwis Embrace Open Banking As Givealittle Adopts New Payment Technology
Kiwi start-up Volley is transforming how New Zealanders give, as Givealittle becomes the first major platform to adopt its new open banking technology; the platform processed close to $32 million in donations last year.
Volley is a pay-by-bank technology that enables people to send and receive payments seamlessly without sharing bank account numbers. Its service launched on Givealittle in October, a milestone for open banking in NZ, and one Kiwis have been quick to adopt; hundreds of thousands of dollars in donations were processed in the first few weeks alone.
New Zealand is preparing for the rollout of new open banking laws next month, described by experts as the most significant shift in payment networks since the introduction of EFTPOS in 1989. Volley co-founder James McCann says until now, there hasn’t been a viable alternative for charities to process payments.
“You either had to fill out paperwork or direct debit forms, which are slow and clunky, or rely on a third-party ‘screen-scraping’ service to make a payment directly from your bank account. The other option was for donors to use cards and absorb percentage-based fees on every transaction.
“Now, all they need is a QR code for instant donations. As a donor, you simply scan, approve the payment in your banking app, and it’s done. This is just one of the many advantages open banking will bring to payment networks across Aotearoa,” McCann says.
Kiwis gave $31.5 million via Givealittle last year, and Lythan Chapman, Givealittle CEO, says they’re always looking for ways to make giving easier.
“By partnering with local innovators like Volley, we can offer donors a seamless, trustworthy payment experience. The uptake has been incredibly positive, which tells us there’s strong demand for innovation and convenience in this space,” she says.
Jack Callister, co-founder of Volley, says they’re thrilled to see how quickly Kiwis are embracing open banking technology through platforms like Givealittle.
“For us, it’s about removing the barriers that get in the way of giving; things like credit card surcharges and unnecessary admin. We’re encouraged by how easily people are using Volley, especially given that it’s still a relatively new technology for most Kiwis. The early signs point to widespread rapid adoption once open banking officially comes into force in December,” he says.
Volley recently closed its first capital raise, with Xero founder Rod Drury backing the fintech start-up, ahead of the introduction of open banking regulations from 1 December this year.