Source: Tesco Bank
Tesco Bank is to become the first UK bank to introduce new technology that allows its 2.6 million credit card customers to more easily manage and pay their balance.
The ‘Pay by Bank’ facility will be provided by Tesco Bank and enabled by Mastercard’s Open Banking Connect™ service. It allows Mobile and Online credit card customers to make payments directly from their current account via electronic payment services.
The new feature is made possible as a result of Open Banking legislation, and Tesco Bank is the first in the UK to introduce it for the payment of credit card balances. The main benefits for customers are:
Simplicity - Pay by Bank delivers a straightforward way for customers to pay their credit card directly from a current account. Customers do not have to remember any account details or find their debit card to make a payment.
Visibility - The Pay by Bank method of payment allows customers to view their current account balance before deciding how much of their credit card to pay - and see their bank balance update instantly.*
Security - Customers can make safe and easy payments from non-Tesco Bank current accounts using their bank’s usual online or mobile app login details to verify payment.
Testing and roll-out of the new functionality started in August 2020, with all Mobile and Online credit card customers expected to have access to this new payment option, enabled by Mastercard, in the coming weeks.
Tesco Bank is the fourth largest credit card provider in the UK, with a range of cards targeted towards the different borrowing needs of customers. This includes Purchase Cards and Balance Transfer Cards, as well as a Foundation Card for those who are looking to re-build or improve their credit rating.
All Tesco Bank credit cards reward customers with Tesco Clubcard points when they spend on their card, with one point collected for every £4 spent in Tesco, and for every £8 spent elsewhere.
Sigga Sigurdardottir, Chief Customer Officer, Tesco Bank, said:
“Tesco Bank’s purpose is to help Tesco shoppers manage their money a little better every day. The introduction of Pay by Bank helps us do that for 2.6 million of our credit card customers, giving them a simple and secure way of paying their credit card, and greater control of their finances.
“We are particularly pleased to be the first UK bank to make this technology available for credit card customers. We expect this functionality to be widespread in the market in the coming years.
“This is a great example of the strength that our partnership with Mastercard brings to our credit card offering.”
Kelly Devine, Division President for Mastercard UK and Ireland, said: “Bringing more simple, safe and convenient ways for people to pay is at the very heart of our Open Banking solutions. With this enhancement, Tesco Bank customers will have greater flexibility to make payments against card balances than ever, aiding budgeting and placing them in full control of their finances.”
*This is subject to your bank’s capability