American Express has announced plans for an Open Banking service enabling UK customers to pay for online purchases directly from their bank account.

Due to launch later this year, the Pay with Bank transfer service will partner with a number of merchants to launch the bank transfer service on their e-commerce sites.

It will offer a real time payment option for current account holder at UK banks, regardless of whether or not they are American Express card members.

These merchants cross multiple industries, including travel, retail, charity and hospitality, with partners including Hays Travel, JustGiving, Oak Furnitureland, Richer Sounds, Royal Lancaster London hotel, and Thai Airways.

The service will leverage Open Banking regulation and financial data sharing to let merchants to receive instant payments from all major UK banks’ Current Account holders. Consumers will be able to make online payments quickly without a card to hand, view their bank current account balances prior to confirming payment, and will get bank-level data security.

Consumers will need to click on the Pay with Bank transfer button on the merchant’s payment page and select the bank they wish to pay from. They will then be automatically redirected to the bank’s webpage or app to authenticate themselves and approve the payment details.

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.”

American Express intends to launch Pay with Bank transfer with its initial merchants before the end of the year, and the product will continue to roll out across additional ecommerce sites throughout 2020.

Dan Edelman, vice president at American Express, added: "Today’s announcement is another way American Express is offering digital-first solutions in our effort to be an essential part of our customers’ digital lives.”

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