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August 10, 2021

Mastercard and Lloyds partnership offers alternative to card-based payments

By Mohamed Dabo

Mastercard and Lloyds Bank Commercial Banking have partnered to deliver a new Open Banking payment solution to Lloyds Bank’s business clients.

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Lloyds Bank’s PayFrom Bank, enabled by Mastercard’s Open Banking Merchant Payment Solution, lets consumers make payments on an organisation’s website directly from their bank account, without having to enter any payment details.

The solution – which is compatible with most retail bank accounts – gives consumers greater choice over how they pay and enhances their user experience by providing a quick, secure and seamless payment option without the need to remember passwords or input data.

Meanwhile, merchants benefit from a cost-effective payment method that supports their working capital by settling funds immediately.

Mastercard and Lloyds Bank’s partnership will help to move open banking account-to-account (A2A) payments into the mainstream.

PayFrom Bank combines Mastercard’s Payment Gateway capabilities and its Open Banking Connect platform – a universal connection to financial institutions’ Open Banking functionality – to deliver a merchant A2A payment solution that covers around 95% of UK bank accounts leveraging Open Banking APIs.

Offering merchants and consumers an alternative to card-based payments

Initial interest in PayFrom Bank is coming from charities for online donations and wallet funding use cases such as investment accounts, although it can be used for any payment scenario.

United Response, a charity that provides support to people with learning difficulties, autism, and mental health needs, is the first merchant to go live with the proposition.

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. 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.”

Mastercard’s Open Banking Merchant Payment Solution is available as a white-label solution. Financial institutions – such as Lloyds Banking Group – are able to easily integrate with it and instantly access the majority of UK bank accounts through Open Banking Connect.

Free Report
img

Prepare for changes in the Payments market

 The Payments market has seen drastic changes in the past few years, with this only expected to continue. What does your company need to do to prepare for what’s to come? GlobalData’s Payment Trends for 2022 report explores the key trends in technology, consumer habits, and regulations shaping the market. We also identify the leading companies in this changing market, giving you a competitive market outlook. This report covers the impact of:
  • ESG
  • E-commerce
  • Mobile payments
  • Alternative payment rails (Real-Time Payments, Blockchain, BNPL)
  • Fraud & Cybersecurity
  • Regulations
Download the report now to learn essential strategies to maximize your growth in the face of rapid change.
by GlobalData
Enter your details here to receive your free Report.

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