Payit uses the Open Banking infrastructure to allow customers of UK banks to pay for products and services offered by retailers who use the service, which is targeted at mid to large corporate companies
NatWest launches new open banking payments service. (Credit: Royal Bank of Scotland)
NatWest has today announced the launch of a new online payment service, Payit by NatWest, which allows customers to make instant online payments to participating retailers, without the use of a debit or credit card – resulting in a fast, fair, simple and safe payment experience.
Payit uses the Open Banking infrastructure to allow customers of UK banks to pay for products and services offered by retailers who use the service, which is targeted at mid to large corporate companies.
Open Banking was introduced in 2018 by the CMA to allow licensed financial service providers to share customer data, and NatWest’s use of the technology means it’s the first major UK bank to utilise open banking to facilitate payments in this way.
With customers of the UK’s nine largest banks eligible, consumers don’t need to bank with NatWest to take advantage, and can use the service by selecting the Payit™ button on the merchant’s payment page and then selecting the bank they wish to pay from. The consumer is then automatically redirected to their bank’s mobile or online banking to complete the payment. Payit then provides settlement to the merchant within 2 hours via faster payments.
The UK Government has signed Payit up via its Crown Commercial Service (CCS) Payment Acceptance framework, with a view to making use of the functionality to accept payments across its variety of public websites.
Accountancy software provider FreeAgent, will also offer Payit on its online and mobile platforms imminently, allowing customers to make instant payments from the UK’s nine biggest banks (CMA9).
Paul Thwaite, CEO, Commercial Banking at NatWest said: ‘As the largest supporter of UK businesses, we are thrilled to launch Payit by NatWest, allowing mid to large 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. Payit™ joins our growing portfolio of digital innovations for businesses, showing NatWest’s commitment to helping them thrive and achieve their potential.’
Developed in partnership with Pollinate and Endava and in pilot since 2018, Payit™ was the winner of the Celent Model Bank Innovation Frontier Award in 2020, in addition to the Best Open Banking initiative at the 2019 Financial Innovation Awards. Payit™ has facilitated over 1,000 payments worth over £270,000 whilst in its testing phase, leading to its full launch to market today.
Source: Company Press Release