The software developer said its network allows secure cash transfers in minutes.
Open Banking pioneer TrueLayer has launched a “breakthrough” quick and secure banking payment service under new European Union rules.
The London-based software development firm said it is public Beta testing its system that allows businesses and consumers to pay for goods and services or transfer money.
The TrueLayer network operates under Open Banking Payment Services Directive (PSD2) and application programming interface (API) rules.
A change in European Union law at the start of the year has brought in Open Banking, which means consumers can allow businesses, other than their bank, to access their financial data.
Advocates say this potentially allows customers to get better deals, such as cheaper overdrafts, and to speed up the switching process.
TrueLayer said under its system cash is transferred in a “few minutes” rather than days, and the network is secure because bank authentication has to be given before money can leave an account.
The software firm said its network is an alternative to bank transfers and traditional payments processors and credit and debit card systems such as Visa and Mastercard.
TrueLayer chief executive and co-founder Francesco Simoneschi said: “When Open Banking was launched this was the development many people in the financial industry were waiting for. It is a new form of online payments that will add much needed competition and open the door to range of innovative applications.”
He added: “The fraud prevention aspect of the API alone would have made a huge impact, however, it is just one of a range of benefits. Near instant transactions, low fees and a streamlined process are all significant and tangible improvements for businesses and consumers.”
The developer is testing the system with 12 firms, including digital wealth manager Moneyfarm.
Giovanni Dapra, chief and co-founder of Moneyfarm, said: “Its potential to ease a lot of pain points by improving the security, speed and availability of transactions is very exciting. We have been anticipating a breakthrough like this from Open Banking which will directly benefit our clients and encourage further innovation in this space.”
TrueLayer was founded by serial entrepreneurs Francesco Simoneschi and Luca Martinetti in 2016 with $11.9m of venture capital funding, from such firms as Northzone, Anthemis Group and Connect Ventures.
The developer has a range of partnerships with a range of fintech players such as Zopa, ClearScore and CreditLadder.