Lloyds Bank partners with Mastercard for open banking payment solution

Lloyds Bank Commercial Banking has teamed up with Mastercard to roll out PayFrom Bank, its new open banking payment solution for its business clients.

The British retail and commercial bank will use Mastercard’s Payment Gateway capabilities and open banking merchant payment solution for its new PayFrom Bank.

PayFrom Bank delivers an account-to-account (A2A) payment solution that can access 95% of UK bank accounts using open banking APIs.

It enables users to make payments on an organisation’s website directly from their bank account, without needing to enter any payment details.

The solution provides consumers with more choice over how they pay and enhances their user experience, as it eliminates the need to remember passwords and other input data.

Also, it enables the merchants to benefit from a cost-effective payment method that settles funds immediately to support their working capital.

The solution is initially offered to charities for online donations and wallet funding use cases, including investment accounts, despite its ability to serve as a payment scenario.

United Response, a charity that supports people with learning difficulties, autism, and mental health needs, will be the first merchant to go live with the new solution.

The partnership between Mastercard and Lloyds Bank is expected to help bring open banking (A2A) payments into the mainstream.

Mastercard UK and Ireland divisional president Kelly Devine 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.”