Brisbane startup to battle BPAY
(1 November 2016 – Australia) Brisbane-based technology startup, Sniip is taking aim at the big four banks’ BPAY technology.
The startup is backed by former Virgin Australia chief executive Brett Godfrey, the co-founders of Wotif.com and former Fortescue Metals deputy chief executive Russell Scrimshaw.
Sniip has announced that it has raised A$3 million in capital, and seeking a public listing in 2017. The firm said they were signing up clients including councils and utility companies, to use its mobile technology which allows customers to receive paperless bills or pay their bill in only 10 seconds by scanning a QR code on the bottom of the bill.
Speaking to the Australian Financial Review, Sniip co-founder and chief executive Damien Vasta said: "We don't want to be aligned with any bank. We are a consumer-focused payment channel. Anyone who is sent a bill is a potential customer.
"Mobile phone payments are becoming a hugely popular method of making payments to billing organisations. Sniip makes payments easier and safer on a mobile, allowing customers to manage their bills more efficiently and simply reducing instances of misplaced bills, forgotten emails and late payment fees."
According to the company, it has already signed up for trials with a number of councils in southern Queensland and utility providers. It is fighting for a space on the bottom of bills next to BPAY and Australia Post Billpay.
BPAY is used by more than 150 Australian banks, credit unions and financial institutions. Established in 1997 for phone banking and then adapted for Internet banking in 2002. It now covers 95 percent of the consumer banking market.
BPAY - which is equally owned by ANZ, CBA, NAB and Westpac - is offered on more than 45,000 bills across 299 industries. Each day BPAY processes an average 1.5 million transactions worth A$1.3 billion.
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