Initially planning their soft launch last month for 200 consumers, Lifepay’s digital banking app received additional demand which extended to 300 participants and with all going well, has today commenced their commercial launch as Australia’s newest payments app.
Bringing together digital banking and wallets for everyday transactions via tap or scan, the app is powered by fintech company Novatti Group (ASX: NOV) which holds a 25% stake in the digital startup. Prior to the soft launch, this stake was valued at $5.1m with Novatti securing the stake in exchange for R&D services provided in the app’s creation.
“We are excited to see Lifepay move to a full commercial launch after the strong interest in the platform shown during its soft launch. The strong, positive feedback received from trial customers has also highlighted its quality,” said Novatti Managing Director, Peter Cook.
“Novatti’s digital banking and payments ecosystem has played a key role in seeing Lifepay move to a commercial launch as the platform will continue to leverage Novatti’s technology and licences.
“We look forward to continuing to support Lifepay in its development and growth going forward.”
Feedback from the soft launch included notable uptake of the prepaid Visa card function within the Lifepay app, which enables users to fund a Visa card and instantly start making payments via tap, scanning a QR code or in online channels.
The app is an extension of various other Novatti services which provide consumers with online cash vouchers and digital gift cards. However, the Visa component of the app is made possible by Novatti’s Visa Principal Issuer License, obtained in September 2019. This enables users to make digital or online payments anywhere that accepts Visa without sharing their personal details with a merchant.
Now fully available for download for iOS and Android devices in Australia, Novatti is set to expand their consumer service offering through the launch of this app in readiness for the launch of their own neobank. This was originally planned for 2020 however COVID-19 resulted in the Australian Prudential Review Authority (APRA) halting all new licences for 12 months with review of Novatti’s application only resuming this month.
Prior to APRA announcing that no new licences would be issued for 12 months, Novatti’s neobank subsidiary had a post-money valuation of $40 million based on its latest funding round in January 2020, before the pandemic’s onset.
*Owners of this website are NOV shareholders
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