NatWest is reported to be trialling a new payments system with Carphone Warehouse enabling consumers to make e-commerce transactions directly with NatWest Pay from their bank accounts without the need to type in debit or credit card numbers.
NatWest Pay to eliminate debit cards in Open Banking play
Currently the NatWest Pay trial appears to be limited to iPhones, when it comes time to pay the consumer is offered the choice of a standard checkout with card or can opt for NatWest’s new service.
They user authenticates with SecureID or their password and are then directed to the NatWest banking app to complete the payment.In the trials over half of customers have chosen to use the NatWest Pay service in preference to their debit card.
The service relies on the fact that the consumer wants to pay in the simplest manner possible and all the retailer wants is the ability to be paid by a trusted third party that routes the payment request to the consumer bank to complete the transaction. It’s very much akin to doing a bank transfer, it’s just that the process is built in to the retailer’s checkout by virtue of the NatWest service.
It could get even more interesting in the future due to the new Open Banking initiatives. Open Banking gives consumers the ability to share their financial information with third parties which means that in the future if you choose to share your banking information with NatWest (even if you’re with a different bank) then you could still benefit from NatWest Pay.
“Open Banking has, first and foremost, been developed with the consumer in mind. Increased competition leads to originality and creativity, with organisations incentivised to launch offers and services that set them apart from the competition. This means that the consumer benefits from personalised deals that match their needs,” NatWest said in a statement.