More than one million customers have made payments through Ecospend’s Pay by Bank technology to make over £3.3bn in tax payments to HMRC since the start of 2024. The increase relates in part to the Self-Assessment tax deadline on the 31 January.
Compared to January last year, the volume of these transactions has increased by 16%. Meantime, the value of transactions is 38.9% higher. Trustly subsidiary Ecospend said that the increases highlight the rapid adoption of its solution since the beginning of its work with HMRC. Specifically, the innovation marks the first time that an open banking payment method had been embedded within a government system.
Payments made via the Pay by Bank solution are sent directly from the tax payer’s bank account. This uses validated HMRC details, which increases the speed of transactions. In turn, this results in potential cost savings and reduces the risk of human error.
Ecospend became the first provider of open banking solutions to be accepted onto the Crown Commercial Services new Open Banking Dynamic Purchasing System (DPS) in January this year. This enables all public sector entities in the UK to access its services.
In 2021, Ecospend became the first provider to support with the implementation of open banking payments in a government department. Specifically, it was awarded a contract with HMRC. NS&I is also using the company to facilitate account-to-account payments.
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