American Express to launch new bank transfer online payment service

Online shoppers will be able to pay retailers directly from their bank account without needing a card to hand, due to a new service being launched by American Express in the UK later this year.

The pay with bank transfer service will be free for consumers to use and enables them to make real-time payments for goods and services online.

People do not have to be an American Express cardholder to use it, but they will need a current account with a UK bank.

American Express said those initially taking part in the scheme include JustGiving, Oak Furnitureland, Richer Sounds and Thai Airways.

Following the initial launch, the product will continue to roll out across additional websites throughout 2020, American Express said.

Consumers will be able to view their bank current account balances prior to confirming payment, and will benefit from “bank-level data security”, American Express said.

To use the service, people will click on the pay with bank transfer button on the merchant’s payment page and select the bank they wish to pay from.

The consumer will then be automatically redirected to the bank’s webpage or app to authenticate themselves and approve the payment details.

The scheme has been enabled by a wider initiative called open banking – which creates opportunities for new payment products.

Open banking allows people to pull together their data from multiple financial institutions, and share it with trusted third parties.

Imran Gulamhuseinwala, trustee of the Open Banking Implementation Entity, said: “It’s great to see American Express seizing the potential that open banking can bring to companies, helping businesses offer a new method to swiftly and securely accept online payments from their customers.”

Dan Edelman, vice president, American Express, said: “We’re excited about open banking and the benefits this product will provide to both consumers and merchants.”

Keith Williams, general manager and head of UK and Ireland at JustGiving, said: “This will not only put us at the forefront of consumer behaviour in payment and banking innovation, it will also make giving even easier.”