Eftpos buys digital wallet Beem It from major banks

Eftpos buys digital wallet Beem It from major banks

Point-of-sale giant Eftpos will make the move from shoppers' pockets to their digital wallets after buying funds transfer app Beem It.

It won't be an unfamiliar home for the app that allows users to transfer money in second between accounts at any Australian bank, as it already operates off Eftpos' existing network.

Since it was founded in 2018 with backing from Commonwealth Bank (ASX: CBA), National Australia Bank (ASX: NAB) and Westpac (ASX: WBC), Beem It had 1.4 million downloads to its name by the end of August this year.

Through the transaction, whose sum is as yet undisclosed, Eftpos will still be partially held by the big four banks as they are among its 19 member owners including Coles Group (ASX: COL), Woolworths (ASX: WOW), Tyro Payments (ASX: TYR), Suncorp (ASX: SUN), Bank of Queensland (ASX: BOQ), Bendigo and Adelaide Bank (ASX: BEN), Citigroup and ING Direct.

Eftpos CEO Stephen Benton said the signing was a logical move for a trusted Australian payments brand that has access to hundreds of thousands of Australian merchants, millions of consumers and was quickly moving into digital payments.

"We are very excited to complete this purchase as a key element to eftpos' strategy to diversify and move further into the digital ecosystem," he said.

"Australians are rapidly moving much of their daily lives to mobile and Beem It is a great Australian-owned and operated option for them to embrace digital payments."

The sale accelerates Eftpos'  move into the digital sphere.

In August the company announced it had started to roll out digital payments solutions for businesses wanting more choice and potential savings in the Covid environment.

Benton said mobile wallets had become the main app for dady-to-day transactions in many parts of Asia and the Nordic countries.

"These Apps make life easier and add value, seamlessly and securely.

"Eftpos the payment system will remain wallet agnostic and be the rails that support a variety of digital wallets."

Beem It has had a troubled early life after it failed to gain traction with many users turning to afterpay apps instead.

Earlier this year the operation's former CEO Angela Clark lodged a lawsuit alleging CBA CEO Matt Comyn revealed her identity when she raised accusations of conflicts of interest for the bank's representatives on the Beem It board.

However, in July Clark withdrew the lawsuit.

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