Tesco Bank is to become the first UK bank to introduce Open Banking 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.
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 the new payment option 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.
“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,” says Sigga Sigurdardottir, Chief Customer Officer, Tesco Bank.
“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.”
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