Nutmeg, which says that bank transfers currently account for a small proportion of payments, has partnered with a leading provider of financial APIs, TrueLayer, to give customers the opportunity to set up a quicker way to pay with multiple layers of security simply by setting up payments from their mobile or online banking.

Open Banking payments use banks’ APIs to initiate a transfer from one account to another. Open Banking allows vendors, like Nutmeg, to pass payment details to the user’s bank via a third-party payment initiator. This only requires the user to log in to their bank and confirm the payment to their Nutmeg account.

Matt Gatrell, chief operating officer, Nutmeg, said: “The payments industry is still dominated by card payments, but bank transfers are the best and fastest way to get money into a Nutmeg account and therefore into the market. However, these transfers have previously had an undesirable user experience. But banking is becoming more user-centric, with solving real user problems at the heart of fintech roadmaps. With this in mind, Nutmeg has worked with TrueLayer to launch Open Banking payments for customers – reducing a lengthy user process to just a couple of taps.”

The integration of TrueLayer’s payment API means Nutmeg is the first wealth manager in the UK to offer customers the ability to use Open Banking payments (Payment Initiation) to contribute to their investments. Customers using Open Banking payments to top up their investments will see the money invested in the market quicker.

Francesco Simoneschi, CEO and co-Founder of TrueLayer, said: “Nutmeg is showcasing yet another innovative application of Payment Initiation - the killer use case for Open Banking. Simplifying and speeding up processes such as payments makes a tangible difference to consumers. It helps them to have much more control and choice with their finances. This is a fundamental goal of Open Banking and another step forward in its wider adoption.”

Gatrell concluded: “We know customers want their investments to be as tech-enabled and digitally seamless as other aspects of their life, so we’re committed to continuing to lead the industry by being the first to add new features, like Open Banking payments, to help people manage their finances.”