London-based VibePay has been given the green light from the UK Financial Conduct Authority (FCA) to provide direct-to-bank payments using open banking.
The first product to market will be a consumer app launching in September 2019, allowing friends to socially plan and pay in groups.
PDS2, the EU directive on Open Banking, has enabled a new wave of businesses to bring change to the payment industry, giving consumers more choice and better services.
The newest addition to receive FCA approval is VibePay, who’s been granted authorisation to provide Payment Initiation Services and Account Information Services. VibePay is part of Vibe Group Holdings and recently announced an investment from Candy Ventures - Nick Candy’s private investment fund.
The first product to launch in the UK is a peer-to-peer payment app for mobile, allowing users to organise events and request money from friends.
Luke Massie, CEO at VibePay, said: ‘The VibePay app makes it easier for groups of friends to plan and pay for their social activities. It takes the pain out of collecting council tax from flatmates and planning holidays with friends.’
VibePay will also be introducing a B2B solution, allowing consumers to pay direct from their bank when they’re shopping online.
Massie said: ‘At Vibe, we understand young consumers and build products that add value to their everyday lives. We’re excited to bring merchants and marketplaces an engaged, transactional and highly targeted user base.’
The Vibe success story started 6 years ago when young entrepreneur Luke Massie, founded secondary ticketing company Vibe Tickets. As part of the promise to make Vibe’s peer-to-peer offering 100% free, VibePay was developed to replace the third party payment provider previously used.