Tesco Bank has announced that it’s the first financial institution in the United Kingdom to introduce technology that allows its 2.6 million credit card customers to more easily manage and pay their balances.
The new service is powered by Mastercard’s Open Banking Connect solution. It allows Mobile and Online credit card customers to make payments directly from their current account via electronic payment services.
The UK bank says the new system is “a straightforward way for customers to pay their credit card balance”. Users don’t have to remember account details or find their card to make a payment.
Pay by Bank allows customers to view their current account balance before paying. The balance also updates “instantly”.
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 this new payment option, enabled by Mastercard, in the coming weeks.
Sigga Sigurdardottir, Chief Customer Officer, Tesco Bank, said:
“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.
“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.
“This is a great example of the strength that our partnership with Mastercard brings to our credit card offering.”
Kelly Devine, Division President for Mastercard UK and Ireland, said: “Bringing more simple, safe and convenient ways for people to pay is at the very heart of our Open Banking solutions. With this enhancement, Tesco Bank customers will have greater flexibility to make payments against card balances than ever, aiding budgeting and placing them in full control of their finances.”
