Mastercard has partnered Lloyds Bank Commercial Banking to enable a new Open Banking payment solution for the bank’s business clients.
Lloyds Bank will launch PayFrom Bank using Mastercard’s Open Banking merchant payment solution.
PayFrom Bank will let consumers make payments on an organisation’s website directly from their bank account, without the need to input payment details and will be compatible with most retail bank accounts.
The first merchant to go live with the proposition is charity United Response.
Mastercard said that merchants are set to benefit from a cost-effective payment method that settles funds immediately.
Through the partnership, PayFrom Bank combines Mastercard’s payment gateway capabilities and its Open Banking Connect platform to deliver a merchant account-to-account payment solution that covers around 95% of UK bank accounts leveraging Open Banking APIs.
Kelly Devine, divisional president of Mastercard UK and Ireland, said: “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.”
She added: “It also removes friction for consumers as all payer details are automatically populated, meaning there’s no risk of entering the wrong account details. We’re excited to be partnering with Lloyds who has a strong pipeline of merchants waiting to sign up to PayFrom Bank.”