PayPoint launches Pay By Bank

Payment Initiation Service Provider (PISP) credit transfers function on the existing interbank infrastructure, but offer customers an easier payment journey as they require fewer steps and less data entry than other methods.

The launch comes as a response to the number of British individuals who have started using Open Banking. According to Open Banking Limited, residents made 11.4 million Open Banking payments in July 2023, a 9% increase on the previous month. One of the fundamental drivers in this growth is single domestic payments, which recorded 10.5 million transactions in July, an 8% rise from June.

The PISP Pay By Bank comes as an addition to PayPoint’s existing Open Banking portfolio, which includes Confirmation of Payee (CoP), Payer Name Verification (PNV), and Account Information Services (AIS) solutions.

By completing payments with Pay By Bank, users may receive a more straightforward experience than debit and credit card payments or traditional bank transfers. The customer needs to select the Pay By Bank option on the retailer’s website or mobile application, and, once they offer consent, the solution connects to the user’s bank account to initiate the payment process. By authenticating the payment using their banking application, customers receive increased transparency, as they can see their account balance before payment.

After being processed, the payment is usually transferred into the merchant’s bank account within two hours. By receiving the funds faster, businesses have a lower cost per transaction, as PISP payments bypass traditional payment card schemes that involve third-party fees.

PayPoint’s officials have stated that they are planning on expanding their digital payments offering, and, by launching this solution, they aim to reduce data input and friction in a customer’s payment journey. Moreover, they have paired this payment option with a Pay-As-You-Go vend, therefore enabling the service for all customers using a smart meter. 

Based in the UK, Ireland, and Romania, PayPoint enables payment and commerce to the public and private sectors, connecting consumers with approximately 60,000 retailer partners and SME locations. The company offers digital solutions, technology, and payment services, as well as a delivery platform for ecommerce brands and their users. Some of their partners include Monzo, Amazon UK, eBay, DPD, EON, Aldi, and Primark.

Back in January 2023, PayPoint entered a collaboration with Funding Circle to help the UK’s SME lending platform provide funding access to the former’s network of 28,000 UK retail partners. Prior to this, Funding Circle partnered with Handepay, part of the PayPoint Group and card payments solutions provider. The extension to PayPoint’s retailer partner network enables retailers on its loyalty scheme to apply for a Funding Circle loan.

PayPoint Romania acquired 24pay, a digital payments application for public transport, in February 2022. The acquisition enables PayPoint to diversify its portfolio of services and continue its digital solutions expansion. 

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