Bank of America has launched a new online payment solution that allows customers of e-commerce companies to make payments directly from their bank account.

The new offering, dubbed as Pay by Bank, is launched in partnership with fintech firm Banked.

Pay by Bank transactions, which will not need credit or debit card details of the users, are based on the concept of Open Banking and take place in real-time.  

It helps users to avoid card processing fees while eliminating the need for companies to obtain and store the card details of the customers.

Furthermore, the solution can be activated by connecting it to a company’s treasury system using APIs.

Bank of America GTS EMEA head and Global Corporate GTS Sales co-head Matthew Davies said: “The launch of Pay by Bank is part of our continual cycle of technology investment that helps us to keep clients at the cutting edge.

“The solution will support clients with creating a better experience for their own customers and help set them apart from their competitors.”

Pay by Bank will be initially launched in the UK, with plans for subsequent rollout in other countries and regions in the future.

Bank of America Technology & Operations International head Andrew McKibben said: “The breadth and scale of our technology development comes from sustained strategic investment.

“We are proud to launch Pay by Bank and continue supporting clients with tools that can have a positive impact on their business.”

Last year, Bank of America introduced Pay to Card, which allows corporates to make payments digitally and directly into an individual’s or small business’ bank account.