One way banks can protect their depository accounts from being used to fund alternative payments online is to directly provide the service themselves.
NACHA has accomplished this in the United States through its Secure Vault Payment initiative named eWise. Other direct-from-bank payment businesses like Moneta and eBillMe also leverage integration with e-banking portals to protect consumer’s credentials online. SafetyPay, another such product, recently announced its partnership with Germany’s giropay to enable online, real-time funds transfers. Now, banks in Italy have chosen EBA Clearing’s product, MyBank, to provide direct SEPA credit transfers:
Using the service, Internet shoppers can initiate Sepa Credit Transfers via their regular online or mobile banking interface without the need to disclose their personal bank account or payment details to any third parties. By the end of this year, MyBank users will also be able to create, modify and cancel e-mandates for Sepa Core Direct Debits.
EBA Clearing is a Pan-European company that provides high and low-value clearing and settlement services to banks across the region. It also provides direct-from-bank funding for online purchases. These products enter a highly competitive market, but outside the U.S., where direct debits and credits are far more common, schemes like MyBank may gain more traction among consumers that may not be as experienced using network-branded accounts and merchants looking for relief from higher cost of acceptance payment types.
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