Pay by Bank is a data-driven solution that uses open banking to provide a fast, low-cost, and more secure method for account-to-account payments (A2A). Here, Tink, a market leader in this space, details how this technology can support government departments
Tink (A Visa Solution) was recently approved as a supplier on the Crown Commercial Service’s Open Banking Dynamic Purchasing System. What does this mean? In short, Tink can serve the UK public sector with a range of open banking services, including account-to- account payments or Pay by Bank.
What exactly is Pay by Bank?
It might sound obvious, but Pay by Bank is simply a way for anyone to pay directly from their bank account. Once a consumer authenticates using Face ID, a fingerprint or a similar bank-level verification method, the money moves between accounts instantly.
With less data entry and fewer redirects, this payment method provides a streamlined experience – at low cost – by letting consumers authenticate and initiate payments with a couple of clicks.
Pay by Bank has a uniquely high ceiling regarding its user experience quality. It takes one line of code and can be embedded digitally in many places, such as on the checkout screen, on an invoice, or as a QR code. The interface is customisable to any branding, so it fits seamlessly into a user journey. There’s also no need to manually enter account details or punch in any numbers – all the user has to do is click. What this all boils down to is that Pay by Bank is fast. We’re talking five clicks, 30 seconds – that’s all it takes to pay with Pay by Bank in the UK.
When it comes to trust, Pay by Bank has a bit of a head start. For one, it’s inherently secure by design. Strong authentication is built-in, no sensitive information is shared with the receiving party, and all payment details are pre-populated.
Fraud prevention tools need to evolve alongside new payment methods. As Tink is a wholly owned subsidiary of Visa, we can also leverage Visa’s experience (in cybersecurity, encryption, tokenisation, and fraud and risk monitoring) to ensure the highest levels of security and trust in Pay by Bank.
Can open banking perform at scale on a national level?
In Sweden, where Tink was founded, there is a strong example of millions of people using open banking payments to pay their bills.
Kivra is Sweden’s digital mailbox. It helps people handle their mail,
sign documents, and pay bills. The government and local authorities also trust it to collect payments such as tax and congestion charges. Tink has been working with Kivra for many years, and our payment technology helps them reduce operational costs and customer friction.
How does it work? Kivra’s customers can pay their bills in a few clicks by connecting their bank account and approving the payment. Kivra states that around 70% of the Swedish adult population uses their platform to pay their bills, proving that Pay by Bank works at scale at a national level.
If national and local authorities in the UK embrace open banking payments, then similar success stories are possible.
How do you pick an open banking provider?
There is plenty of competition in the open banking space, and choosing the right provider can be tricky.
At Tink, we believe that we are best placed to deliver account-to-account payments for the public sector. Alongside Visa, the leading global payments network, we have:
- 50+ years of experience leading the world in payments innovation.
- High reliability and security standards with the Visa platform.
- Access to Visa’s network and platform infrastructure.
- Long-term investment from Visa in growing Tink and A2A payments.
Tink also has experience in other European countries of working with organisations who supply key infrastructure, for example, postal services in Ireland and Italy, and transport networks in Germany.
In summary, Tink, as a pioneer of open banking and now part of Visa, is well-placed to support government departments with their account information services and open banking payments. We enable our partners to take processes that are filled with friction and replace them with data-driven experiences that help eliminate complexity for all consumers.
Follow the links to contact us at tink.com if you want to learn more about how open banking can enhance public sector payments.
This work is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International.
