With the introduction of new technology, Tesco Bank has become the first UK bank to use open banking to enable credit cardholders to pay their balance.
The ‘Pay by Bank’ facility improves efficiency in payments for the firm’s 2.6 million credit card customers to more easily manage and pay their balance, directly through their online payment services.
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.”
The new feature is made possible as a result of Open Banking legislation, and Tesco Bank is the first in the UK to introduce it for the payment of credit card balances.
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.
Kelly Devine, Division President for Mastercard UK and Ireland, added: “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.”
