NatWest Bank has introduced Payit, an Open Banking solution that helps merchants collect ecommerce payments, according to Electronic Payments International.
Payit uses the Open Banking infrastructure to allow customers of UK banks to pay for products and services offered by retailers who use the service, which is targeted at mid to large corporate companies.
Open Banking was introduced in 2018 by the Competition and Markets Authority (CMA) to allow licensed financial service providers to share customer data. CMA works to promote competition for the benefit of consumers, both within and outside the UK.
NatWest’s use of the technology means it’s the first major UK bank to utilise open banking to facilitate payments in this way. In the coming weeks, Payit will also be introducing capability to allow merchants to process refunds.
With customers of the UK’s nine largest banks eligible, consumers don’t need to bank with NatWest to take advantage and can use the service by selecting the Payit button on the merchant’s payment page and then selecting the bank they wish to pay from.
The consumer is then automatically redirected to their bank’s mobile or online banking to complete the payment.
Payit has been named as a supplier to the Crown Commercial Service’s (CCS) Payment Acceptance framework, meaning it is now available to UK government and the wider public sector.
Accountancy software provider FreeAgent, will also offer Payit on its online and mobile platforms imminently, allowing customers to make instant payments from any bank or building society.
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