Hargreaves Lansdown has added a ‘pay by bank’ service as its first move into Open Banking.
A solution from Ecospend will allow Hargreaves Lansdown clients to make secure payments directly to the investment platform without the need for cards.
The investment platform said it plans to adopt more Open Banking services in the future.
George Rodgers, senior product manager at Hargreaves Lansdown, said: “Offering an Open Banking payment method is a step change in the payments experience that Hargreaves Lansdown offers its clients. Our clients can expect a simpler payment journey as well as instant settlement for deposits and withdrawals compared to days under the current system.
“Our adoption of Open Banking is a key milestone in our digital transformation strategy and we will continue to use the best available technology to benefit our clients.”
The payment journey removes the need to enter card details when adding money to a Hargreaves Lansdown account, which the platform said significantly reduces data entry errors and credit fraud risk.
The payment is then authorised via the client’s chosen online banking service (in app or via website), typically using biometric ID.
James Hickman, CCO at Ecospend, said: “There is no one better placed than Hargreaves Lansdown to be driving this change and setting the agenda for the entire wealth management industry. We are very excited to introduce so many new consumers to a simpler, faster and more secure way to pay.”
Ecospend is a UK-based Open Financial technology platform provider. Other clients include HMRC.
