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Lloyds and Mastercard aim to take A2A payments mainstream

Lloyds Commercial Banking is rolling out a new payment service which enables consumers to make payments on an organisation’s website directly from their bank account, without having to enter any payment details.

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Lloyds and Mastercard aim to take A2A payments mainstream

Editorial

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

The new service, dubbed PayFrom Bank, combines Mastercard’s Payment Gateway capabilities and its Open Banking Connect platform to deliver a merchant A2A payment page that covers around 95% of UK bank accounts with Open Banking APIs.

Initial interest in PayFrom Bank is coming from charities for online donations and wallet funding use cases such as investment accounts. United Response, a charity that provides support to people with learning difficulties, autism, and mental health needs, is the first merchant to go live with the proposition.

Kelly Devine, divisional president of Mastercard UK and Ireland, says: “Our Open Banking Merchant Payment Solution offers merchants and consumers an alternative to card based payments and even greater choice over how they checkout. Merchants can now provide their customers with a wider range of payment methods without needing to store payer account details. It also removes friction for consumers as all payer details are automatically populated, meaning there’s no risk of entering the wrong account details."

She says Lloyds has a strong pipeline of merchants ready to sign up.

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Comments: (2)

A Finextra member 

MC will not ruin 50+ years of buidling a profitable card rail. It seems they dabble in Open Banking but don't really want it work as it eats their lunch, unless they just swap all the costs over & open banking becomes as pricey or even more than cards.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

Memory serves, MasterCard had launched an A2A payment product in the past called PayByBank or PayWithBank. Wonder if PayFromBank will fare any better. To a large extent, in markets that have high credit card and POS penetration, A2A is a solution seeking a problem from Consumers / Payers pov. If regulators don't cap MDR for it, A2A might not be the panacea for Credit Card MDR evil that Merchants might expect either.

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