NatWest trials cardless payments for swift shopping
NatWest is trialling payments without the need to use debit or credit cards.
Trial made possible due to UK’s Faster Payments service and open banking
According to the Press Association (PA), the bank says the technology, which takes people directly through to their bank account, could provide customers with an alternative way to pay when making purchases online or on their mobile.
There will be no need to put in long card numbers, as instead, users will get the option to press a NatWest button at the end of the purchase process which will take them through to their mobile app.
The person making the purchase can then login with Touch ID or their standard password before the process completes.
The bank says the initiative could cut the length of time it takes to make an online purchase from minutes to just seconds.
Marion King, director of payments at NatWest, says: “Given how successful our initial trial has been we think directly linking payments from people’s bank accounts without the need for a card will play a much larger role in online shopping in years to come.”
The trial has been taking place involving Carphone Warehouse, NatWest explains.
It says in the initial trial, over half of customers chose to make their payment using the NatWest service, rather than use their card.
PA says NatWest plans further trials with other businesses in the coming months.
The bank adds that the trial has been made possible due to the UK’s Faster Payments service and open banking.
Dean Wallace, practice lead, ACI Worldwide. says: “The service offers numerous benefits for consumers and retailers. Consumers will be able to pay for goods directly from their bank account, without using a debit or credit card. They will see the balance on their account immediately, updated in real time.”
He explains that the core concept behind the new technology is “request to pay” – meaning the person or entity that wants to be paid for goods or services asks to be paid via a trusted third party who then routes the payment request to the consumer’s bank. The bank then uses a secure mobile app to present the request to pay to the consumer so they can choose an account, check the balance, and make the payment.
Wallace adds: “In 2016 Vocalink launched a request to pay service in the UK known as PaybyBank App. In the next few months we expect similar services to launch in the UK and Europe, made possible through open banking, the wider pan-European PSD2 regulation and the roll-out of several new instant payments schemes.”
