NatWest Bank has introduced Payit, an Open Banking solution that helps merchants collect e-commerce payments.
The new online payment service allows customers to make instant online payments to participating retailers, without the use of a debit or credit card.
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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 Competition and Markets Authority (CMA) to allow licensed financial service providers to share customer data. CMA works to promote competition for the benefit of consumers, both within and outside the UK.
NatWest’s use of the technology means it’s the first major UK bank to utilise open banking to facilitate payments in this way. In the coming weeks, Payit will also be introducing capability to allow merchants to process refunds.
Payit will “facilitate frictionless payments”
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.
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By GlobalDataThe consumer is then automatically redirected to their bank’s mobile or online banking to complete the payment.
Developed in partnership with Pollinate, built by Endava, and in pilot since 2018, Payit has won a host of accolades including Retail Banker International’s ‘Best Customer Facing Technology of the Year’ award, the Celent Model Bank Innovation Frontier Award and the Best Open Banking initiative at the 2019 Financial Innovation Awards.
Marion King, director of payments at NatWest, was a speaker at the 35th annual global RBI awards event:
“Payit will facilitate frictionless payments direct from your customer’s bank account, helping to improve your cash flow,” she explained.
Payit has also been named as a supplier to the Crown Commercial Service’s (CCS) Payment Acceptance framework, meaning it is now available to UK government and the wider public sector.
CCS supports the public sector to achieve maximum commercial value when procuring common goods and services. In 2018/19, CCS helped the public sector to achieve commercial benefits worth £945m.
Payit will also help customers save on transaction fees
Accountancy software provider FreeAgent, will also offer Payit on its online and mobile platforms imminently, allowing customers to make instant payments from any bank or building society.
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 larger 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”
Compared to debit or credit card offerings, Payit will save users a minimum of 25% for average transaction values of approximately £80, and there is no need to store customer billing data.
