Lloyds and Mastercard sign open banking payments partnership
Lloyds Bank Commercial Banking has signed a partnership with Mastercard to launch a new open banking payment solution.
The new platform, dubbed “PayFrom Bank” and focused on Lloyds’ business customers, allows consumers to make payments on a firm’s website directly from their bank account.
Lloyds says the solution – which does not require the user to enter their payment details – gives users greater choice over how they pay.
On the merchant side, the bank says it provides a cost-effective payment method that supports their working capital by settling funds immediately.
PayFrom Bank utilises Mastercard’s Payment Gateway technology, as well as its Open Banking Connect platform.
The pair says initial interest in the solution is coming from charities for online donations, as well as investment providers.
“Our Open Banking Merchant Payment Solution offers merchants and consumers an alternative to card-based payments,” says Kelly Devine, president for Mastercard UK and Ireland.
“Merchants can now provide their customers with a wider range of payment methods without needing to store payer account details.”
Mastercard’s Lloyds partnership follows a deal with Verizon in the US to provide 5G services to payments made over mobile.