In a strategic move to boost account-to-account payment adoption, fintech firm Banked has acquired UK consumer payments app VibePay. The acquisition aims to bridge the rewards gap between debit and credit payments by introducing incentive programs traditionally reserved for credit card users.
VibePay’s technology—which combines real-time payments with personalized offers and AI-driven financial insights—will now power Banked’s Pay by Bank proposition. The integrated solution will offer consumers cashback and tailored merchant discounts when using account-to-account payments, while giving businesses unprecedented access to verified Pay by Bank users for targeted promotions.
“This acquisition finally gives debit users the rewards they deserve while providing merchants with powerful retention tools,” said Banked CEO Brad Goodall. The deal notably includes VibePay’s AI recommendation engine, which analyzes spending patterns to deliver hyper-personalized offers—a capability Banked plans to leverage for its banking and merchant partners.
The VibePay acquisition marks Banked’s second strategic purchase in a year, following its October 2024 takeover of Australian Pay by Bank provider Waave. That deal subsequently enabled Banked’s partnership with National Australia Bank to power Amazon Australia’s account-to-account payments.
Strategic Benefits:
- Consumer Incentives: Cashback/rewards for Pay by Bank users rivaling credit card programs
- Merchant Tools: AI-powered insights and targeted promotion capabilities
- Bank Partnerships: Enhanced value proposition for financial institutions adopting Pay by Bank
- Global Blueprint: UK-focused VibePay integration follows Australian market success with Waave
Initially rolling out in the UK, the combined platform will allow participating merchants to reduce payment costs versus card transactions while gaining access to closed-loop promotional channels. For banks, it offers a compelling answer to the “rewards gap” that has slowed account-to-account payment adoption despite lower processing fees.
The move reflects intensifying competition in the Pay by Bank sector, where fintechs are racing to replicate credit cards’ commercial appeal while preserving account-to-account payments’ cost advantages. With VibePay’s AI capabilities, Banked aims to create a virtuous cycle where consumer rewards drive payment volume, which in turn fuels better merchant insights and more attractive promotions.
Implementation Timeline:
- VibePay app to integrate Pay by Bank rewards in Q3 2025
- Merchant onboarding for targeted promotions begins Q4 2025
- AI recommendation engine available to Banked’s enterprise partners in 2026
As regulatory pressures mount on card fees globally, Banked’s acquisition spree positions it as a leading architect of the post-card payments ecosystem—one where instant bank transfers gain parity with credit through smart incentives and data-driven engagement tools.