Photo: AFP
Two New Zealand tech firms are looking to capitalise on the launch of regulated open banking, rolling out a new service that promises to cut fees for sole traders.
What is open banking, how does it work and what are the risks?
Sole trader accounting platform Hnry and payment firm Volley's new service would allow sole traders to take payments on-the-go, without needing a card terminal or percentage-based debit and credit card transaction fees.
The companies said sole traders would be able to generate a QR code in the Hnry app for clients, who would then scan and approve payments in their bank app.
"It cuts both admin time and costs," said Hnry co-founder James Fuller, noting strong demand for an option like the service provided by Volley.
"Personal trainers, for example, don't want to carry a card terminal, pay high fees, send invoices or chase payments," Fuller said. "Now they can get paid on the spot, with no charge to their customer and just a small flat fee for them."
The funds would be transferred for a flat fee of 35 cents per transaction.
Volley is a New Zealand-built payment method, launched by Jack Callister and James McCann.
It uses open banking technology to enable what they say is secure, account-to-account payments without sharing bank or card details.
Volley co-founder James McCann, who previously worked at Hnry, said New Zealand's open banking infrastructure has caught up with the world.
"We've worked with open banking systems overseas, so we know what great looks like," McCann said.
Hnry said it would gradually roll out Scan to Pay to all its customers over the next few weeks.
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