London fintech initiates £2.4bn of open banking transactions through ‘pay by bank’ services

A London fintech platform provider has initiated £2.4bn of open banking transactions through ‘pay by bank’ services across its client portfolio.

Ecospend has been enlisted to implement ‘pay by bank’ payments across a number of high profile businesses and organisations as well as 13 HMRC tax regimes, including self-assessment, PAYE, corporation tax and VAT.

Its open banking technology allows customers to bypass manual data input when carrying out online payments. As a result, customers can make instant payments directly from their bank account, at a fraction of the cost of traditional cards to merchants, while also significantly reducing the risk of fraud.

Ecospend also has partnerships with London Mutual Credit Union, as well as utilities and ecommerce platforms. HMRC was the first Government in the world to offer customers the ability to pay via this method, and truly integrate open banking technology.

James Hickman, CCO, Ecospend, said: “We’re delighted that our technology has facilitated such a significant value of payment transactions with our partner businesses.

“This milestone is a testament to the innovative product we have developed, and this is just the beginning when it comes to the true application of open banking technology.

“Our solution not only gives customers a smoother and more efficient payment experience, but also reduces the cost for businesses and organisations when compared to traditional card transactions.

“In the year ahead, we expect more consumers and merchants to benefits from the capabilities of this technology.”