Synch said appointing Nexi as its technology partner is a key milestone toward launching its app, after the venture was given the green light by the CCPC this month.
Synch Payments, the mobile payment app venture by major Irish banks to take on Revolut and N26, announced today (30 June) that it has appointed an Italian paytech company to be the venture’s platform and service provider.
Synch said the appointment of a technology partner is a key milestone toward fully launching its new mobile app, which is understood to be called Yippay.
The Italian company, Nexi, is well known in the European mobile payments sector as its Jiffy platform powers the Bancomat Pay service in Italy.
Working with Nexi, Synch plans to offer Irish banks a mobile-only experience for consumers, to reduce costs and accelerate the use of digital payments in Ireland.
A joint venture between AIB, Bank of Ireland, Permanent TSB and KBC, Synch was made to take on emerging neobanks such as Revolut and N26 that provide more digital-friendly banking and payment options.
The venture was established in 2020 but soon ran into trouble with the Competition and Consumer Protection Commission (CCPC).
Last December, the CCPC launched a full investigation into Synch to determine if it meant “foreclosing potential new competitors from entering the market for the provision of banking products” by not allowing them to participate in the mobile payments service.
After these stumbling blocks, Synch was given the go-ahead by the CCPC earlier this month, leading to the possibility of the Yippay app launching as soon as the end of the year.
“Since the recent CCPC announcement a week ago we have had a number of enquiries from organisations that want to join the service.” Synch managing director Inez Cooper said. “It is a really exciting time and we are delighted that we will have Nexi working alongside us – ensuring that we have a trusted partner with world class credentials in digital payments.”
Nexi’s director of cards and digital payments, Andrea Mencarini, said the company was the first in Italy to offer a smartphone based “P2P and P2B service” with Jiffy. He added that Nexi is eager to work with Synch in delivering an “instant mobile platform” for Ireland.
It is not clear what KBC Ireland’s stake is going to be in Synch as it is one of two major banks exiting the Irish market this year, the other being Ulster Bank. Emerging neobanks such as Dutch fintech Bunq have their eyes on the customers these banks will leave behind.
10 things you need to know direct to your inbox every weekday. Sign up for the Daily Brief, Silicon Republic’s digest of essential sci-tech news.
Source by www.siliconrepublic.com
