Peach Payments co-founders Andreas Demleitner and Rahul Jain.

Peach Payments, a South African fintech, has formed an alliance with one of the country's top four banks in a bid to target ecommerce sites.

Peach Payments now accepts Nedbank Direct EFT as a payment method on ecommerce sites that use its platform.

The fintech company said today that Nedbank Direct EFT enables online shoppers to make secure and safe payments straight from their Nedbank bank account, without having to input their card details or reveal bank login information on a merchant's website.

Nedbank Group is one of South Africa's four largest banks, providing wholesale and retail banking services, as well as insurance, asset management, and wealth management.

The emergence and expansion of a number of financial technology companies in industries previously dominated by major incumbents has transformed the financial services ecosystem, according to Tapestry Networks, a management consulting services firm.

It says although incumbents first saw fintechs as a competitive threat, bankers now see them as potential partners in launching new products and services and migrating away from old systems.

Rahul Jain, co-founder and CEO, Peach Payments, said: “We expect very quick adoption of Nedbank Direct EFT by businesses that want to offer their customers easy, safe payment options

“This is another positive step toward the goal of opening up ecommerce to more consumers in a safe and reliable way."

Nedbank Direct EFT is an example of the technology trend known as open banking, says Peach Payments in statement.

It explains further: “This banking practice provides third-party financial service providers with open, permission-based access to consumer banking, as well as financial data such as transactions from financial institutions. It is widely considered a key way to democratise financial services, as it gives consumers more choices in how they manage their money.”

“Nedbank Direct EFT prioritises the safety of customers’ details while offering the convenience of an efficient payment method for Nedbank customers when shopping online or making bill payments,” says Thabiso Wessie, Nedbank senior specialist for emerging payments.

Nedbank Direct EFT is the latest of several similar services available on Peach Payments’ platform, including Capitec Pay.

Founded by Jain and Andreas Demleitner in 2012 in Cape Town, Peach Payments has become one of largest online payment gateway in South Africa, with activities in Kenya and Mauritius.