Ecospend’s Pay-by-Bank solution is now available for Hargreaves Lansdown’s ISA, and general investment accounts. This follows an initial launch in May 2023 to its Active Savings clients where it processed over £850m. Hargreaves Lansdown (HL) forecasts an adoption rate of well over 30%.

Open banking technology provider, Ecospend, was acquired by Trustly in a deal announced in 2022. It provides a solution which helps HL clients make payments directly into their HL accounts without the need for cards. Payments are authorised through the client’s chosen online banking service, in app or website. The service typically deploys biometric ID, significantly reducing the chance of fraud.

A2A Pay-by-Bank: bypassing card networks, avoiding interchange fees

The account-to-account Pay-by-Bank method not only makes it easier for clients to top up their accounts. It also bypasses card networks and interchange fees. In turn, this helps to drive business efficiency and bring about meaningful cost savings for HL.

As an instant and automated service, Pay-by-Bank has also resulted in considerable savings on reconciliation for HL. As payment references are auto-populated, Ecospend’s payment method provides unmistakable accuracy in reconciliation. The result is the elimination of all manual aspects of the transfer for HL.

HL accessed open banking market in February 2022

HL said it selected Ecospend as open banking partner based on the quality of its technology and services. And the robustness the solution has demonstrated through its open banking relationship with HMRC.

“We’re dedicated to improving client experience including when making payments into Hargreaves Lansdown accounts. Our partnership with Ecospend has proved to be a great success so far. Pay-by- Bank now accounts for 30% of payment volumes where available,” said George Rodgers, lead product manager, Hargreaves Lansdown.

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“As a result, we’re now live on mobile. We are rolling this payment method out to our entire ISA, SIPP and general investment account range, to continue providing solutions that make the payment journey faster, easier for clients, reduce fraud risk and also help improve business efficiency.”

James Hickman, CCO, Ecospend added: “It’s excellent to see the tangible benefits that account-to-account payments can bring to a business such as Hargreaves Lansdown. We’re proud to provide a solution which helps drive efficiency and improves the overall customer experience. It is a natural replacement for card payments, and a response to changing consumer behaviour and digital adoption. We’re excited to see further benefits realised when the solution is rolled out to every HL client.”