ClearBank and Allpay join forces for UK prepaid and bill payments
The UK’s newest clearing bank ClearBank has teamed with Allpay to offer its “banking-lite” services for the prepaid card market.
Allpay is moving into agency banking
ClearBank has built a new technology platform, built on Microsoft Azure, specifically for clearing and settlement services – making it the “ideal partner” for Allpay as it moves into agency banking.
Allpay says it can now provide a virtual account platform to its clients and their customers, with access to Bacs, Chaps and Faster Payments.
Tony Killeen, MD and founder of Allpay, says: “There is a natural synergy between the collection of payments such as council tax and housing rent, with the paying out of funds using prepaid cards for benefits and adult social care payments.”
He adds that this latest deal is a “significant step in our expansion to support the government wide Universal Credit strategy”.
Alongside its existing digital payment solutions, such as standing orders, direct debits and card payments, Allpay says the partnership is aimed at “reducing costs and administration with the benefit of streamlining audit trails and accounting functions”.
According to Allpay, it processes nearly £8 billion a year from more than 67 million transactions. The business is part of Allpay Limited, established in 1994, and headquartered in Hereford, with offices in London and Cheltenham.
Allpay Limited works with central government departments, social housing, education, credit unions debt collection agencies, and energy companies to facilitate the collection and receipt of revenues.
As first reported by FinTech Futures in January 2017, ClearBank joined the crowded challenger scene as the first new clearing bank in 250 years in the UK.
The bank (also known as CB Infrastructure Limited) is the brainchild of Nick Ogden, founder and former CEO of payments processing heavyweight WorldPay (sold to RBS in 2002).
Soon after that January scoop, ClearBank went on record about its plans.
