Ecospend Partners with Hargreaves Lansdown to Launch Pay-by-Bank Mobile Solution

Ecospend, a subsidiary of Trustly, has announced a new partnership with UK-based Hargreaves Lansdown to launch its Pay-by-Bank solution on mobile. After the announcement, the updated Pay-by-Bank tool is anticipated to be available for Hargreaves Lansdown’s ISA, SIPP, and general investment accounts. The service has already processed GBP 850 million in payments to Active Savings accounts.

The Pay-by-Bank tool, where available, has accounted for 30% of payment volumes within six months of its initial launch. The decision to make it available on mobile is in response to customer needs and preferences, while also maintaining compliance with industry laws and requirements.

Ecospend’s Open Banking Technology

Ecospend is a UK-based company specialising in Open Banking technology. It offers proprietary technology that supports a product portfolio divided into two main areas: Payment services (Pay-by-Bank) and Marketplace solutions.

Through this partnership, Ecospend aims to provide Hargreaves Lansdown clients with the ability to make payments directly into their accounts securely and efficiently, bypassing the need for cards. Transactions are authorised through the customer’s chosen online banking solution, typically using a biometric ID verification process. This process is expected to significantly reduce potential fraud and prioritise user safety and privacy.

Benefits of Pay-by-Bank Solution

The Pay-by-Bank solution was developed to make account top-ups easier for customers and to bypass card networks and interchange fees. This approach is expected to bring efficiency and cost savings to Hargreaves Lansdown. As an instant and automated solution, Pay-by-Bank is expected to provide considerable savings on reconciliation.

The payment references are auto-populated, adding to the accuracy in reconciliation and eliminating all manual aspects of the transfer process. The product is also a response to changing customer behaviour and the increasing adoption of digital solutions.

Ecospend and Hargreaves Lansdown share a goal of making the payment journey faster, easier, and more secure for users. They also aim to reduce fraud risks and optimise overall business efficiency and development processes.