Bank of America Launches Online Payment Solution, "Pay by Bank"

Rhea-AI Summary

Bank of America has introduced a new online payment solution called Pay by Bank, developed in collaboration with Banked Ltd. Initially available in the UK, this real-time payment method allows e-commerce customers to pay directly from their bank accounts without the need for credit or debit card details. Key benefits include enhanced security, reduced customer data storage, and lower transaction costs.

The rollout signifies Bank of America's commitment to technology investment aimed at improving customer experiences and supporting clients' competitive advantage in the market.

Positive

• Introduction of 'Pay by Bank' enhances customer experience for e-commerce payment.
• Eliminates need for card data storage, boosting security.
• Cost-effective solution avoiding card processing fees.
• Streamlined payment reconciliation for businesses.

Negative

• None.

LONDON, Feb. 14, 2022 /PRNewswire/ -- Bank of America today announced its latest online payment solution called Pay by Bank. Launched in conjunction with Banked Ltd., this new feature allows customers of e-commerce companies, initially in the UK, to pay directly from their bank account. Pay by Bank transactions, which are based on the concept of Open Banking, take place in real-time and require no credit or debit card details. This makes online checkout simpler, faster and more secure.

How Pay by Bank works 

1. A customer adds an item to their online shopping cart and proceeds to the checkout page.
2. They select the "Pay by Bank" payment option and then their own personal bank from the menu.
3. To authenticate payment, they simply validate using their existing login credentials through their online banking platform.
4. Once authenticated, the payment is sent directly from the customer's bank to the company's account.
5. The customer is returned to the checkout page and the transaction is complete.

"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," said Matthew Davies, co-head of Global Corporate GTS Sales and head of GTS EMEA at Bank of America. "The solution will support clients with creating a better experience for their own customers and help set them apart from their competitors."

Key benefits of Pay by Bank

• Reduction of customer data storage – since a card is not required and it is an online 'account to account' payment, companies do not need to obtain and store customer card data.
• Streamlined reconciliation – incoming payments are added to a company's receivables, so they can view everything together in one place.
• Straightforward connectivity – easy to set up by connecting it to a company's existing treasury system using APIs.
• Security – leverages the customer's bank authentication network.
• Cost effective –avoids card processing fees.

"The breadth and scale of our technology development comes from sustained strategic investment. We are proud to launch Pay by Bank and continue supporting clients with tools that can have a positive impact on their business," said Andrew McKibben, International head of Technology & Operations at Bank of America.

The solution is currently available in the United Kingdom. Subsequent roll-outs will occur in other countries and regions in the near future.

Bank of America is an award-winning provider of global transaction services and was most recently named the World's Best Bank for Payment and Treasury by Euromoney and Outstanding Financial Innovator by Global Finance magazine.

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,200 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with approximately 41 million active users, including approximately 33 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact:

Megan Pearson, Bank of America     
Phone: +44 (0)20 7995 6977
megan.n.pearson@bofa.com  

 

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SOURCE Bank of America Corporation

FAQ

What is Bank of America's Pay by Bank payment solution?

Pay by Bank is a new online payment solution allowing customers to make payments directly from their bank accounts without credit/debit card details.

When was Pay by Bank launched by Bank of America?

Pay by Bank was launched on February 14, 2022.

Where is Pay by Bank currently available?

The Pay by Bank solution is currently available in the United Kingdom.

What are the benefits of using Pay by Bank?

Benefits include enhanced security, reduced customer data storage, cost-effectiveness, and streamlined payment reconciliation for businesses.

Is Bank of America planning to expand Pay by Bank to other regions?

Yes, Bank of America plans to roll out Pay by Bank in other countries and regions in the near future.