Bank of America has launched an online payment solution that enables customers of ecommerce companies to pay for transactions directly from their bank account, in partnership with paytech company Banked.
Called Pay by Bank, the solution is initially available in the UK and relies on open banking, removing the need for a credit or debit card to pay a transaction. Bank of America says the solution makes online checkout simpler, faster and more secure.
Commenting on the launch of Pay by Bank, Matthew Davies, head of global transaction services for Europe, the Middle East and Africa at Bank of America, says: “The launch of Pay by Bank is part of our continual cycle of technology investment that helps us to keep clients at the cutting edge.”
“The solution will support clients with creating a better experience for their own customers and help set them apart from their competitors.”
That investment includes backing Banked, a paytech company with an international team of more than 60 employees across nine locations and provider of the new payment method enabling consumers to pay from their existing mobile banking app, in its $20 million series A funding round.
Bank of America led the round with Edenred Capital Partners. This brings Banked’s total investment raised to date to more than $30 million and the participation of new US-based investors, including Sidekick and 9Yards, supports its plans for expansion there.
Brad Goodall, chief executive officer of Banked, says: “Banked has built a product that can operate inside tier 1 banks, payment providers, gateways and technology platforms to allow them to offer Pay by Bank to their merchants. We have had a maniacal focus on infrastructure, security, and end consumer experience. Our clients only need to focus on integration.”
“We really want to work inside the existing ecosystem and are building out very strong partnerships to deliver Pay by Bank globally. 2022 will see some really big brands go live with Pay by Bank, driving at the heart of delivering innovation at point of purchase to both the merchant and consumer.”