NatWest is to use Open Banking technology to allow businesses to send payments directly to customers without needing their bank details, in what it claims is an industry first.
Available within its flagship Open Banking payments service, Payit by NatWest, the feature aims to replace the use of cheques and bank transfers when sending money to customers, allowing for instant payments to be made when issuing refunds or customer service payments, as well as for specific uses such as compensation payments and emergency cash requirements.
Payit launched in early 2020, initially allowing businesses to collect payments from customers online using Open Banking.
James Hodgson, head of Payit by NatWest says: “The need for businesses to send their customers money often occurs at the most crucial moments, and yet the typical methods can be slow, inefficient and expensive. We’re aiming to transform that experience with Payit, which now allows businesses to send payments that are credited to customer accounts in a matter of seconds, and all without the need for their bank details”
He says the bank is currently working on plans to enhance its Open Banking compatibility by launching an API proposition, allowing merchants to integrate Payit directly with their own technology infrastructures.