Mastercard and Lloyds Bank partner on new Open Banking checkout solution

• Lloyds Bank Commercial Banking will be utilising Mastercard’s Open Banking Merchant Payment Solution to launch PayFrom Bank.
• The solution enables individuals to make online payments directly from their bank accounts, giving consumers more choice over how they pay and providing merchants with instant settlement of funds
• United Response, a charity supporting vulnerable people, is the first merchant to sign up.

Mastercard and Lloyds Bank Commercial Banking have partnered to deliver a new Open Banking payment solution to Lloyds Bank’s business clients.

Lloyds Bank’s PayFrom Bank, enabled by Mastercard’s Open Banking Merchant Payment Solution, lets consumers make payments on an organisation’s website directly from their bank account, without having to enter any payment details.  

The solution – which is compatible with most retail bank accounts – gives consumers greater choice over how they pay and enhances their user experience by providing a quick, secure and seamless payment option without the need to remember passwords or input data.

Meanwhile, merchants benefit from a cost-effective payment method that supports their working capital by settling funds immediately.

Mastercard and Lloyds Bank’s partnership will help to move open banking account-to-account (A2A) payments into the mainstream. PayFrom Bank combines Mastercard’s Payment Gateway capabilities and its Open Banking Connect platform – a universal connection to financial institutions’ Open Banking functionality – to deliver a merchant A2A payment solution that covers around 95% of UK bank accounts leveraging Open Banking APIs.

Initial interest in PayFrom Bank is coming from charities for online donations and wallet funding use cases such as investment accounts, although it can be used for any payment scenario. United Response, a charity that provides support to people with learning difficulties, autism, and mental health needs, is the first merchant to go live with the proposition.

Kelly Devine, Divisional President of Mastercard UK and Ireland, 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.”

Mastercard’s Open Banking Merchant Payment Solution is available as a white-label solution. Financial institutions – such as Lloyds Banking Group – are able to easily integrate with it and instantly access the majority of UK bank accounts through Open Banking Connect.

To find out more visit https://openbanking.mastercard.com/register-interest/

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About Mastercard

Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry.  We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.  Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone.  Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.

About Lloyds Banking Group 

• Lloyds Banking Group is a leading UK based financial services group providing a wide range of banking and financial services, focused on personal and commercial customers
• We help businesses from all parts of the UK, and across all different sectors and sizes, giving them the funding and support they need to grow both at home and abroad
• We provided over £31bn of business lending in 2020, including £13bn of government-backed loans to support customers through the pandemic
• We remain committed to helping our customers with their lending needs and typically approve 9 out of 10 applications
• We are also helping British businesses grow back greener and have committed £5bn in green financing 
• To see the latest factsheet setting out how we support UK businesses please visit: Supporting British businesses – Lloyds Banking Group plc

Our support for businesses 

• We’re there for all sizes of business, from small and mid-sized companies right up to multinational corporations
• Through a network of relationship teams based across the UK, as well as internationally, we deliver a mix of local understanding and global expertise necessary to provide long-term support to our clients to help them fulfil their growth aspirations
• We offer a broad range of finance beyond term lending and this spans import and export trade finance, structured and asset finance, securitisation facilities and capital market funding
• Our product specialists provide bespoke financial services and solutions, including tailored cash management, international trade, treasury and risk management services