National Australia Bank buys London fintech Banked to expand pay-by-bank services

National Australia Bank (NAB) has acquired London-founded fintech Banked, in a move that underlines the rapid shift toward account-to-account payments. The deal will see the payments startup, which has raised more than $50 million from major global investors, reorient its focus toward the Australian market.

Banked’s technology enables consumers to pay directly from their bank accounts when shopping online, offering an alternative to traditional card-based payments. NAB, already a customer and investor in the company, aims to use the acquisition to enhance its real-time payment options for businesses and consumers.

Banked’s journey from London startup to Australian banking acquisition

Founded in London in 2018, Banked developed a payments platform that allows online payments to be routed straight between bank accounts – a model widely referred to as account-to-account or “pay by bank” payments. This approach is designed to reduce reliance on card networks, potentially cutting costs for merchants and speeding up settlement times.

Over the years, Banked secured financial backing from high-profile investors including Bank of America, Insight Partners and Citi. Across several funding rounds, the fintech raised more than $50 million, helping it expand beyond the UK to offices in Palo Alto and Vilnius.

NAB was among Banked’s institutional partners before the acquisition. The Australian lender had been using Banked’s technology and had also taken a stake via its venture investment arm, laying the groundwork for a closer integration.

NAB’s strategy: scaling real-time account-to-account payments

National Australia Bank has now purchased Banked for an undisclosed sum. By bringing the fintech in-house, NAB plans to strengthen its range of payment options for Australian businesses and consumers, particularly in fast, real-time transactions that do not rely on cards.

According to NAB executive Shane Conway, pay-by-bank services are becoming an increasingly important part of Australia’s evolving payments ecosystem. He noted that real‑time, account‑to‑account payment methods are emerging alongside cards and digital wallets, as customers demand speed, simplicity and reliability in how they pay.

With Banked’s platform, NAB gains technology built specifically to support these newer payment flows, which can be integrated into merchant checkouts and digital experiences. This is expected to help the bank respond to growing demand for efficient, low-friction online payments.

Shift in geographic focus and impact on Banked’s operations

Following the acquisition, Banked is expected to wind down its presence in the UK and US and concentrate on serving the Australian market under NAB’s ownership, according to people familiar with the matter cited by Tech.eu. This marks a significant strategic pivot for the company, which had originally positioned itself as a global payments player with hubs across multiple regions.

Banked’s CEO and co-founder Brad Goodall said the company has built a payments platform designed for modern developers and merchants of varying sizes. He added that having NAB’s backing would allow the technology to reach a wider customer base than it could have achieved independently.

Background on the abandoned VibePay deal

Earlier in the year, Tech.eu reported that Banked’s previously announced acquisition of UK fintech VibePay had ultimately fallen through. Although a deal had been publicized, sources indicated that issues identified during Banked’s due diligence process led to the transaction being abandoned.

The failure of that deal was followed by Banked’s sale to NAB, suggesting a change in direction from expansion through acquisitions in Europe to concentrating on a deep partnership within Australia’s banking sector.

What the deal signals for the future of payments

NAB’s purchase of Banked highlights how incumbents in traditional banking are moving to secure advanced digital payments capabilities, rather than relying solely on in-house development. As account-to-account and real-time payments gain traction globally, major banks are increasingly partnering with or acquiring specialist fintechs to keep pace.

For merchants and consumers in Australia, the deal is likely to mean a broader rollout of pay‑by‑bank options at online checkouts, giving an alternative to cards and digital wallets. For the fintech sector, it underscores that proven payment platforms with strong institutional backers and live bank relationships can become attractive acquisition targets for large lenders adapting to a rapidly changing payments landscape.