FIS and Banked Join Forces to Introduce New Pay-by-Bank Solutions

Global fintech leader FIS has announced on Feb.14 a strategic partnership with Banked, a top provider of open banking solutions, aiming to introduce innovative pay-by-bank offerings for businesses and consumers.

Pay-by-bank solutions streamline payments by merging real-time payment rails with the flexibility of open banking. This allows third-party financial service providers to access banking data for digital payments, facilitating direct payments between business and consumer bank accounts without card details or account numbers. Businesses benefit from decreased fraud and processing fees, while consumers enjoy smoother payment experiences and faster access to funds.

Seamus Smith, FIS Group President, stated, "Corporations and consumers are clamoring for solutions that move their money easier and faster, and as open banking and fraud prevention mature, FIS is in a unique position to start offering pay-by-bank solutions for both businesses and consumers. Partnering with Banked is a proof point of FIS' commitment to bring frictionless payments to a wider spectrum of critical industries in a secure, convenient and cost-effective manner and complements the investments we're making in next-gen payments infrastructure."

Digital payments, including account-to-account (A2A) transactions like pay-by-bank, have surged, with A2A payments generating an estimated $525 billion in e-commerce transaction value in 2022. A 13% compound annual growth rate is projected for A2A payments.

Banked's CEO, Brad Goodall, expressed enthusiasm for the partnership, emphasizing their shared mission to improve payments. He highlighted FIS's innovative approach and their joint efforts to leverage open banking and real-time payments for enhanced customer experiences.

FIS, having pioneered real-time payments, including certification for the FedNow Service in 2023, seeks to leverage this momentum to modernize the payments segment with Banked's collaboration.