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News and resources on payments systems, innovations and initiatives worldwide.

NatWest uses Open Banking for cardless e-commerce payments

NatWest has launched an open banking-based service that lets customers of multiple lenders make instant online payments to participating retailers, without the use of a debit or credit card.

  12 3 comments

NatWest uses Open Banking for cardless e-commerce payments

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Customers who shop at participating merchants can click a Payit button at checkout and be redirected to their bank's app or online banking page, where they log in to complete the payment. It will soon get the ability to process refunds.

Thanks to the UK's Open Banking infrastructure, Payit is available to customers of the UK's nine largest banks. It is being aimed at mid to large corporate companies and has also been named as a supplier to the Crown Commercial Service’s Payment Acceptance framework, meaning it is available to government and the wider public sector.

The service, developed in partnership with Pollinate and built by Endava, is finally launching after two years of piloting, which began with Carphone Warehouse back in summer 2018.

Paul Thwaite, CEO, commercial banking, NatWest, says: "As the largest supporter of UK businesses, we are thrilled to launch Payit by NatWest, allowing mid to larger businesses with an online presence to accept payments directly from their customers’ bank accounts in near real time, providing them with an effortless and safe payment experience.

"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."

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Comments: (3)

Duane Tough

Duane Tough pres at PBATM

Its a bit 'Clunky' , lots of options out there...will see if the consumer adoption picks up on it.....good one to watch though with all those FI's potentially promoting it....

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

There are a plethora of existing PSPs like EBA myBANK (EU), iDEAL (Netherlands), and BillJunction et al (India) who have been providing this "Bank Transfer" mode of payment for at least a decade without Open Banking. Keen on knowing whether and how Open Banking will enhance the value proposition of PayIt for Consumers, Merchants and Banks. 

A Finextra member 

"And be redirected to their bank's app or online banking page, where they log in to complete the payment". Sorry to be firstly cynical. I can do that from my mobile bank app now without the fuss & without a NW account. Plus if it is not as easy to use as NFC nor as cheap as debits, most won;t use it & paypal already do things well, they just charge too much. The good news is that we are working on putting that right with banks in mind, merchants & consumers, not the status quo schemes fees, T+1-7 & disputes. Watch this space.

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