LONDON—Lloyds Bank reported it is teaming up with Mastercard to launch PayFrom Bank, a solution it said will provide users with the power to make direct payments to merchants from their bank accounts.
In a released statement, Kelly Devine, divisional president of Mastercard U.K. and Ireland, said Mastercard’s open banking merchant solution offers freedom of choice to both sellers and consumers when it is time to check out.
“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,” Devine said.
According to Lloyds Bank, the PayFrom Bank tool is enabled by Mastercard’s open banking merchant payment solution and allows shoppers to sidestep entering payment data or passwords. Funds are directly deducted from a customer’s financial institution and the tool works with most retail bank accounts, Pymnts.com explained, adding that for merchants PayFrom Bank is a cost-effective payment method that offers immediate settlement to help support working capital.
Aside from seeking to help consumers and merchants move money, the partnership between Lloyds and Mastercard is also intended to advance open banking account-to-account (A2A) payments into the mainstream, Pymnts.com said.