UK-based PayPoint has made a £3 million investment in Open Banking software-as-a-service startup OBConnect.
PayPoint and OBConnect will form a commercial partnership as part of the deal.
Nick Wiles, CEO of PayPoint, said the investment in OBConnect will further enhance its channel-agnostic payment platform for clients in multiple sectors, including government, local authorities and housing associations.
“This investment will enable PayPoint to continue its diversification to digital and support our clients and their customers further with smart technology designed to improve their experience and reduce costs,” he said.
The deal will see Open Banking services, offering payments and account information services directly to its customers, added to PayPoint’s digital payments offering to improve the customer experience, making it easier for organisations to access data for the benefit of their customers.
PayPoint said that the emerging opportunity for PayPoint and OBConnect focuses on corporate and enterprise applications for Open Banking solutions, particularly through Confirmation of Payee (CoP) to reduce fraud and improve the payments experience for consumers.
PayPoint recently joined Pay.UK’s CoP service to deliver services to support local government and energy companies deliver cost-of-living support payments.
Darran Morford, CEO of OBConnect, added: “PayPoint was a natural partner for us as we seek to expand our Open Banking solutions, enabling more organisations and consumers to benefit from better experiences and lower costs.
“This investment will help us build on the significant progress made in the last few years and unlock further opportunities for both parties.”