American Express taps Open Banking for account-to-account payments

American Express taps Open Banking for account-to-account payments

American Express is to move into the account-to-account space, enabling UK consumers to pay for goods and services online and on the go, directly from their bank account.

Set for launch later this year, Pay with Bank transfer will be a real-time payment option available via Open Banking APIs to current account holders at UK banks, regardless of whether they are American Express Cardmembers.

The move acts acts as a bulwark against the incursion of account-to-account payments into the credit card business, mirroring similar recent initiatives by rivals Mastercard and Visa.

American Express has so far struck deals with Hays Travel, JustGiving, Oak Furnitureland, Richer Sounds, Royal Lancaster London hotel, and Thai Airways, who will each add a Pay with Bank transfer button to their online checkout options.

Consumers will be able to make online payments without a card to hand, view their bank current account balances prior to confirming payment, and will benefit from bank-level data security.

Dan Edelman, vice president, American Express, says: "Pay with Bank transfer reflects our commitment to delivering choice for UK consumers and businesses through new ways to pay. We’re excited about Open Banking and the benefits this product will provide to both consumers and merchants.”

Comments: (2)

Chetan Ghadge
Chetan Ghadge - Wipro - Pune 23 September, 2019, 10:54Be the first to give this comment the thumbs up 0 likes

Will be interesting to see if the customers going for "pay with bank" option get any reward/loyalty points.

A Finextra member
A Finextra member 23 September, 2019, 10:56Be the first to give this comment the thumbs up 0 likes

I wonder whether you can make cross-border payments in the same way?