Ecospend partners with London Mutual Credit Union to empower customers through ‘pay-by-bank’ services
Ecospend, a leading UK provider of Open Banking APIs, has today announced a partnership with London Mutual Credit Union that will enable ‘pay-by-bank’ functionality to its customers. The change will result in real-time money transfers, driving the credit union further towards its vision of achieving a friction-free experience for customers.
As the largest credit union in the Southeast of England, London Mutual Credit Union offers a range of banking products, including current and saving accounts, as well as loans to its 37,000 members.
Customers will be able to make payments directly from their account through biometric ID, creating an online payment method that does not require data or personal information. By making payments instant, London Mutual’s members will be able to better manage their cashflow and experience a streamlined process as there is no opportunity to enter incorrect details.
The payments journey will now bypass interim payment fees associated with a typical card transaction, ultimately helping customers save money and ensuring a safe and convenient customer journey from beginning to end. As processing costs are removed, the profits will be reinvested into the services that London Mutual Credit Union offers its customers.
Additionally, by using the ‘pay by bank’ option when making loan repayments, there is opportunity to reduce the amount of interest members might pay as money is cleared instantly, guaranteeing no interest increases between the time that the payment is made and subsequently settled.
Furthermore, as Ecospend will connect members’ banks to their merchants’ banks, the chance of third-party interference in the transaction is eradicated, meaning there is no chance of card fraud.
James Hickman, COO, Ecospend, comments:
“Customers are continuously favouring more convenient, secure and time-saving alternatives to traditional payment methods. As a London-based fintech company, we’re keen to address these customer expectations by helping them better manage their money, whilst benefitting from existing features of a conventional card payment, including refunds, recurring payments and subscription plans. We’re excited to offer ‘pay-by-bank’ to ensure a smooth, frictionless end-to-end customer journey for London Mutual Credit Union’s customers whilst offering them the chance to better manage their finances through instant transactions.”
Leanne Phillips, Business Analyst, London Mutual comments: “We know that customer expectations are increasingly high when it comes to digital services and we want to provide the best service possible. With the help from Ecospend, we are able to offer customers the opportunity to make payments directly from their accounts, ensuring a more safe, efficient and secure payment journey. Added to this, we are committed to doing all we can to help our members manage their money, and by giving them the ability to make instant payments we can help empower them to do this.”