Hargreaves Lansdown (HL) has reportedly selected Ecospend, the United Kingdom’s Open Banking provider, in order to offer a “pay by bank” service to its customers.
Ecospend’s solution should enable HL’s clients to complete payments directly to their HL accounts more quickly and securely and without the need for payment cards.
The payment option eliminates the requirement to enter card details when adding funds to an account, significantly reducing data entry errors as well as card fraud risk. The payment is authorized through the customer’s preferred online banking service (in-app or website) using a biometric ID, creating a secure experience.
The account-to-account‘ pay by bank’ option also bypasses card networks and interchange fees which brings considerable cost savings and efficiencies – the automated user experience removes the risk of human error and saves the time required to reconcile manual bank transactions.
After assessing the Open Banking market in February 2022, Hargreaves Lansdown chose Ecospend based on the quality of its tech and services and the robustness the solution has shown through its partnership with HMRC.
George Rodgers, SVP at Hargreaves Lansdown, said:
“Offering an Open Banking payment method is a step change in the payments experience that Hargreaves Lansdown offers its clients. Our clients can expect a simpler payment journey as well as instant settlement for deposits and withdrawals compared to days under the current system. Our adoption of Open Banking is a key milestone in our digital transformation strategy and we will continue to use the best available technology to benefit our clients.”
James Hickman, CCO, Ecospend, said:
“This is an important step forward for the Open Banking industry given the importance and reach of Hargreaves Lansdown. We are thrilled to be working with the market leader in wealth management to deliver a new solution that is both a natural replacement for cards and the perfect response to changing consumer behaviours and digital adoption.”
Hickman added:
“We are very excited to introduce so many new consumers to a simpler, faster and more secure way to pay. And this is just the tip of the iceberg. Open Banking offers service providers an opportunity to serve customers with a range of solutions that are more convenient and secure, from payments to digital authentication and instant credit checks.”