Nuapay to provide Payment Initiation to UK public sector

Source: IBS Intelligence 2020-06-10

Payments provider Nuapay has been selected to join the UK Government Crown Commercial Service’s Payment Acceptance Framework, allowing public sector organisations to benefit from Open Banking payments for the first time.

The Payment Initiation service will allow organisations to accept real-time account-to-account payments, reducing processing costs and removing the need for card scheme rails.

Because no card or account credentials are shared, Open Banking payments reduces the risk of fraud. The payer instructs the bank to send money directly to the recipient’s account.

Brian Hanrahan, Chief Commercial Officer of Sentenial, Nuapay’s parent company, commented: “This is excellent news for the adoption of open banking payments.”

“Already this year, the number of UK consumers using open banking passed the one million milestone. As large public sector organisations begin accepting open banking payments, the cost and security benefits to consumers and businesses will become more visible and adoption will further increase.”

The Payment Acceptance Framework includes Nuapay and Payment Initiation Service Providers (PISPs) Worldpay, Global Payments, Token, Reflow, American Express, NatWest and TrueLayer.

The framework will enable public sector organisations to take payments quickly and with minimal friction while ensuring compliance with security and data privacy regulations including Secure Customer Authentication (SCA).

Nuapay noted that consumers make billions of pounds in debit and credit card payments each year to government agencies, meaning there is potential for a significant proportion of these payments to be migrated across to open banking solutions.

Moreover, the Open Banking initiative is expected to accelerate bank transfers as a means of payment.

Nuapay to provide Payment Initiation to UK public sector

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