Hargreaves Lansdown Taps Ecospend to Provide "Pay by Bank" Service

Hargreaves Lansdown (HL) has selected Ecospend, the UK's leading Open Banking provider, to provide a "pay by bank" service for its clients. Ecospend's solution will allow HL's clients to make payments directly to their HL accounts more easily and securely and without the need for cards.

Fazzaco to Launch Business Awards 2022

The payment journey removes the need to enter card details when adding money to an account, significantly reducing data entry errors and card fraud risk. The payment is authorised via the client's chosen online banking service (in app or website) typically using biometric ID, creating a seamless and secure experience.

The account to account "pay by bank" method also bypasses card networks and interchange fees which brings cost savings as well as efficiencies - the automated user experience removes the risk of human error and saves the time taken to reconcile manual bank transfers.

George Rodgers, Senior Product Manager, Hargreaves Lansdown: "Offering an Open Banking payment method is a step change in the payments experience that Hargreaves Lansdown offers its clients. Our clients can expect a simpler payment journey as well as instant settlement for deposits and withdrawals compared to days under the current system. Our adoption of Open Banking is a key milestone in our digital transformation strategy and we will continue to use the best available technology to benefit our clients."

James Hickman, CCO, Ecospend: "This is an important step forward for the Open Banking industry given the importance and reach of Hargreaves Lansdown. We are thrilled to be working with the market leader in wealth management to deliver a new solution that is both a natural replacement for cards and the perfect response to changing consumer behaviours and digital adoption."

Source: Finextra