VibePay connects brands, people, and banks with real-time messaging and instant payments. Similar to Venmo or Cash App utilised in the US, the company gained Gen Z and Millennial clients, offering conversational commerce through personalised offers, peer-to-peer payments, and financial insights.
The acquisition aims to address a gap in the market by rewarding debit users who have been overlooked in traditional credit card ecosystems. Even though the UK debit payments market made up 86% of card payments in 2023, the people who make those payments receive less than 2% of the rewards. To tackle this challenge, the partnership will bring together Banked’s payment infrastructure platform and Vibe Pay’s next-gen consumer experiences and merchant insights tools.
Consumers can gain access to personalised rewards, cashback, and exclusive offers with every Pay by Bank transaction in the VibePay app. Banker chose the app for its new AI-driven insights and buyer recommendation engine, which will allow its partners and merchants to target verified Pay by Bank users through VibePay’s channels, providing tailored offers and messages to drive sales, increase basket sizes, and boost engagement.
According to Banked, the advantage of Pay by Bank goes beyond cheap and secure payments, as it makes spending easier for everyone involved. The combination of Banked and VibePay will drive Pay by Bank adoption through consumer incentives that are at the same level as credit cards, and support merchants with data insights to drive better acquisition and retention. This is the second acquisition Banked made in the last 12 months after acquiring the Australian Pay by Bank provider, Waave, in October 2024.
The acquisition was supported by VibePay’s supporter and investor, Candy Ventures, whose director will be joining Banked’s board alongside VibePay’s CEO. The acquisition is awaiting FCA approval, after which the deal will be complete. Candy Ventures claims that this initiative is a positive outcome for the UK tech sector.
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