NatWest has become the first UK bank to use open banking, to provide customers with an alternative way to pay for online purchases - without having to use their debit or credit card.
The service removes the need to input long card numbers, customers can simply select the payment type and their bank during the checkout process, at which point they will be redirected to their own bank’s online banking page or mobile app. The customer will then login with Touch ID or their standard password before the process will complete automatically – cutting the times involved from minutes to just seconds.
This new payment method will benefit both customers and merchants. For customers they can check their balance before making a payment and therefore avoid any surprise transactions or overdraft fees, and they will be able to make payments sharing only a minimal amount of data. The open banking technology will enable bank to bank transfers using faster payments delivering immediate settlement for merchants. The new technology will also remove the need for card carriers saving merchants at least 25% of card processing costs.
Commenting on the launch of the new technology Paul Thwaite NatWest MD, Sales, Specialist Businesses and Business Banking said:
“I am delighted to launch this new payments service, the latest in a number of innovative offerings that we have brought to our customers recently. Running in conjunction with our new approach to merchant acquiring, NatWest Tyl, this new service provides our customers with an alternative way to pay, which is convenient and simple to use, and brings benefits to both our personal and corporate customers. I am particularly pleased that it will also be available to customers from a range of high street lenders across the UK.”