This release was in GlobeNewswire and announces a new service called Pay Direct from Bottomline Technologies, the New Hampshire-based payments technology company. The release’s title and some content seems to indicate that the product is being positioned as a receivables tool, however both buyers and suppliers can benefit. The solution is available in the U.K. at present.
Here’s more from article:
‘As an Open Banking payment initiation service, Pay Direct enables online businesses to receive funds directly from the payer’s bank account via Faster Payments. Using Pay Direct, the payer initiates the payment from their trusted bank application whilst remaining in the business’s online journey, ensuring a consistent brand and user experience. This way of processing an online payment offers an attractive alternative for merchants looking to reduce card fees, benefit from quicker settlement and improve reconciliation.’
Mercator Advisory Group has not received a briefing on this particular solution, but through the open banking initiative across Europe, third parties can initiate payments while remaining in the buyer workflow using APIs for a seamless execution. In this case, Pay Direct accesses Faster Payments, the U.K. real-time rails, and settles immediately with an online merchant/supplier. It is another option versus direct debits and card-based payment tools. The release does emphasize the cash collections side of things so we assume that is where major adoption efforts will be targeted.
“This is a great example of Open Banking giving merchants the ability to receive instant payments from their customers,” said David Beardmore, Ecosystem Development Director, Open Banking Implementation Entity (OBIE). “It is encouraging to see that despite these challenging times, we have companies like Bottomline in our thriving ecosystem who are leveraging Open Banking technology to deliver greater value and improved choice.”
We also assume further geographical expansion since real-time payment systems and open banking initiatives are fairly widespread at this time across the globe.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
