PEXA develops new payment system and partners with ClearBank to enable new remortgage platform
- PEXA, the fintech, powering digital property exchange, has developed a brand-new payment system to enable its new remortgage platform – PEXA Pay
- This will be just the 7th active retail payment scheme that settles at the Bank of England
- PEXA also announces partnership with ClearBank to enable lenders not yet integrated with PEXA Pay to utilise the new remortgage platform
PEXA, the Australian-founded fintech that enabled the world’s first fully digitised property settlement process, today announces the successful development of a brand new payment scheme – PEXA Pay. At the same time, PEXA has partnered with ClearBank, the largest next generation clearing and embedded banking platform in the UK, to broaden access to its forthcoming remortgage platform.
Having facilitated over eleven million property transactions worth circa AU$2 trillion in Australia, PEXA is now developing a bespoke solution for the UK’s housing market, starting with the launch of its remortgage platform in Autumn. The platform is designed to streamline the process for all parties involved in the remortgaging process, reducing the time required and costs, and improving consumer outcomes.
To ensure the platform can expedite the settlement process, PEXA has created an entirely new payment scheme – PEXA Pay. When transactions commence in September, it will be only the 7th active payment scheme. The Bank of England will be acting as the settlement agent for PEXA Pay. The platform and payments scheme has now been successfully tested with a cohort of seven mortgage lenders. PEXA has also agreed with the Bank of England to test the payments scheme with another cohort of lenders in October.
Today, PEXA also announces a new partnership with ClearBank, to allow for the final disbursement of funds to transaction accounts held with lenders not already integrated with PEXA’s own platform, opening the functionality to the wider market. The first new clearing bank in 250 years at its launch in 2017, ClearBank was recently named as the fastest-growing UK tech company by Deloitte and secured a £175 million equity investment led by Apax Digital, in March 2022.
PEXA continues to work closely with conveyancers, lenders, regulators and government stakeholders as it continues to develop its proposition and build out its ecosystem. This includes its ongoing work with the wider mortgage industry as it develops a robust rulebook for the new payments scheme.
James Bawa, Chief Executive, PEXA UK comments: “As we build momentum within the UK market and gear up for the launch of our remortgage platform later this year, I’m thrilled to confirm the development of a new payment scheme - which will settle at the Bank of England, and our partnership with ClearBank.
“PEXA’s investment into creating an entirely new payments scheme highlights the scale of our commitment to transforming the UK’s remortgage process, and I am thankful for the support of the Bank of England as we have built it. It is critical to unlocking the true potential of our technology, delivering a much faster and more efficient way for settlement to take place, benefitting lenders, conveyancers and consumers alike.”
“ClearBank is a natural partner for us. Its rapid growth since launch reflects its innovative approach and ability to leverage technology to simplify and speed banking processes, while its access to all existing payment schemes made it an excellent fit for our new proposition.”
Charles McManus, Chief Executive, ClearBank also comments: “Property is a new space for ClearBank to enter, where there is enormous scope to improve legacy infrastructure with innovative financial technology. PEXA Pay is a testament to this and is set to transform the remortgaging process for all parties involved.
“We’re particularly excited to work with a business whose values align so squarely with our own, and who is a fellow pioneer in its field – creating and delivering powerful solutions that help businesses unlock their potential. This is just the first step in our partnership and we look forward to working together with PEXA to further streamline the critical process of property lodgement and settlement.”
PEXA’s investment into the UK has also received endorsement and recognition from both the UK and Australian governments, cited by UK Prime Minister Boris Johnson in a call with Australian Prime Minister Scott Morrison following the UK-Australia Free Trade Agreement.
Louise Cantillon, British Consul General Sydney and Deputy Trade Commissioner Asia Pacific (Australia & New Zealand) at Department for International Trade (DIT) says: “I am really excited to see that Australian unicorn PEXA has found a partner in ClearBank that will enable them to deliver their innovative conveyancing services to the UK market, transforming the remortgage process there. We are very proud to have had the opportunity to assist PEXA in their expansion into the UK, which is testament to the strength of the long-standing trade and investment relationship between Australia and the UK.
“Myself and my team here at the UK Government are very much looking forward to our continued relationship with PEXA and supporting them as they fulfil their potential in the UK markets.”