Custom Credit and Ordo to offer instant Open Banking payments

Custom Credit provides loans to people who could otherwise find it hard to get credit in the UK and tailors the initial loan and the ongoing payment schedule to their individual circumstances. Ordo’s Open Banking payments platform, using the UK’s real-time money transfer Faster Payments service as the payment rails for the underlying Open Banking payment, provides secure and real time payments, from one bank account to another bank account – used for both paying loans securely out, and loan repayment back.

Custom Credit’s customers can pay using Ordo from more than 98% of banks in the UK, with no need to register, sign up or download an app to be able to make instant and secure payment. The company is rolling out Ordo’s Request to Pay and ecommerce services across all areas of its business allowing Open Banking payments to be used for loan disbursement, borrower repayments and ad hoc collections where customers need to flex their repayments to respond to life events and a pay greater or lesser amount for a particular instalment.

For these use cases flexible, immediate, and accurate Open Banking payments are needed. Launching with Ordo’s Variable Recurring Payments (or VRP) services as standard, Custom Credit is looking to make a difference in the lending market for those that have found themselves trapped without affordable credit or the ability to absorb short term stresses in their income or expenditure. 

Using Ordo’s fully managed services means Custom Credit can lend immediately, and then receive loan repayments back. When a borrower makes a repayment, they are automatically correctly referenced, and deposited into their Custom Credit’s account. Custom Credit customers know where they are with their money, as repayments are debited from their account immediately, so they know the balance they see when they check their bank account is exactly what they have left to spend, no pending payments, meaning they can feel in control and able to cope with their finances. Custom Credit also provides helpful, graphical information to the customer on their income and expenditure patterns over time so they can plan accordingly.

Making loan disbursements and repayments is intended to be easy: Custom Credit’s customers receive a secure tokenised link, QR code or ‘pay now’ button via text, in-app notification, email or post. Within a few clicks, the repaying customer is directed to securely log into their bank as they usually do, where the specific loan repayment has been set up for them by Ordo waiting for them to authorise. There’s no typing in account or card numbers, no having to remember references, and no waiting for the customer to remember to initiate the journey and make a bank transfer. Making it easy for customers to pay means they’re much more likely to make payment and sooner, meaning better cash flow and much less internal cost in businesses chasing to collect money.