London-based Banked, provider of an account-to-account payment method enabling consumers to avoid the card schemes at checkout and pay from their existing mobile banking app, is to enter the US market having completed a $20 million Series A funding round led by Bank of America and Edenred Capital Partners.
Founded in 2018 and kickstarted by regulatory changes across Europe with Open Banking, Banked's Pay by Bank software provides an alternative to credit card schemes by giving consumers the option to choose their existing bank at checkout. Users are then securely connected to their mobile banking app to biometrically authenticate the purchase.
The software suite includes a checkout API for businesses to embed on their Websites and a P2P banking app for consumers.
The company charges a flat fee of 0.1% to process payments. Its software also transfers money without sharing customer bank details, with a claimed 96% reduction in fraud.
Total checkout time for a first-time user is under 30 seconds, while merchants benefit from lower processing costs and instantaneous settlement.
Brad Goodall, Banked CEO says: “Banked has built a product that can operate inside tier 1 banks, payment providers, gateways and technology platforms to allow them to offer Pay by Bank to their merchants. We really want to work inside the existing ecosystem and are building out very strong partnerships to deliver Pay by Bank globally. 2022 will see some really big brands go live with Pay by Bank, driving at the heart of delivering innovation at point of purchase to both the merchant and consumer.”