Digital payments specialist, PayPoint has launched a Pay By Bank service for Pay-As-You-Go energy customers, the company has announced.
According to the firm, it is the first Open Banking provider to offer the service as a Payment Initiation Service Provider (PISP). The move comes as a record number of Brits continue to take to Open Banking. Data from Open Banking Limited shows that 11.4 million open banking payments were made in the UK, in July, a nine percent rise on the previous month with one of the key drivers in this growth being single domestic payments. This recorded 10.5 million transactions in July, an eight per cent increase on June
Although PISP credit transfers operate on existing interbank infrastructure, a typical PISP payment requires fewer steps and less data entry than other methods.The PISP Pay By Bank solution strengthens PayPoint’s existing Open Banking portfolio, which includes Confirmation of Payee (CoP), Payer Name Verification (PNV) and Account Information Services (AIS) solutions.
How it works?
To make payments using the Pay By Bank solution the user first selects the Pay By Bank option on the merchants website or app. Upon giving consent, PayPoint as the PISP connects to the customer’s bank account to initiate the payment. The customer authenticates the payment using their banking app, resulting in greater transparency as they can see their account balance before payment.
The payment is then processed and transferred to the merchants account typically within two hours. As PISP payments bypass traditional payment card payment schemes that involve third party fees, payments are typically made faster at a lower cost per transaction. This is seen as a key benefit for businesses receiving the funds.
Jo Toolan, Director of Client Services at PayPoint, said: “We are committed to investing in and growing our digital payments offering, including our suite of Open Banking solutions.”
She added: “Our most recent Pay By Bank solution offers customers a payment method that requires fewer steps and less data input than others, thereby reducing friction in a customer’s payment journey. Uniquely, we have paired this payment option with a Pay-As-You-Go vend, enabling the service for customers using a smart metre. The launch of Pay By Bank is a major milestone in the evolution of our Open Banking offering and our long-term success in providing omnichannel payment solutions.”
