Open Banking, launched in 2018 allows financial service providers to share customer data. NatWest’s says the new service makes it the first major UK bank to utilise open banking to facilitate payments in this way.
NatWest has launched a new online payment service, Payit, allowing instant online payments to retailers without the use of a debit or credit card.
The bank says that Payit will save a minimum of 25 per cent for average transaction values of approximately £80, compared to a debit or credit card.
Payit, which is targeted at mid to large corporate companies, uses Open Banking infrastructure. Consumers don't need to bank with NatWest to use the service. This can be done by selecting Payit button at the point of sale.
The consumer is then automatically redirected to their bank’s mobile or online banking to complete the payment.
Paul Thwaite (pictured), CEO of Commercial Banking at NatWest says the service will allow mid to larger businesses with an online presence to accept payments directly from their customers’ bank accounts in near real-time. “We are especially pleased to have used Open Banking technology to achieve this, allowing customers of the UK’s main banks to use this new payment option.”
Accountancy software provider FreeAgent, will also offer Payit on its online and mobile platforms imminently, allowing customers to make instant payments from any bank or building society.
Payit will soon also be introducing the capability to allow merchants to process refunds.
The service was developed in partnership with Pollinate, built by Endava, and in pilot since 2018.