NatWest expects big things from Big Tech in payments innovation

NatWest Group’s long-running work with the Federation of Small Businesses (FSB) has snowballed into a full payments partnership.

Signed today (1 May), the UK commercial bank’s Tyl by NatWest payments division – specialising in providing card machines, online and phone payments – will work with FSB to cut costs for its enterprise members.

According to Tyl, eight of 10 small businesses could save on fees by switching from existing card payment providers. The firm offers a fee structure based on one low rate for personal card transactions and another for all other transactions for the smallest businesses, with a more diverse range of fees for larger businesses.

Caroline Lavelle (FSB) and Mike Elliff (Tyl) – Source: NatWest Group

Caroline Lavelle, Chief Commercial Officer of the FSB, commented: “I’m delighted to form this partnership with Tyl by NatWest. We have a long-standing history of working with NatWest on various business initiatives and look forward to this next step in our relationship.

“As many of our members, and the wider UK small business community, continue to navigate the increasing cost of trading, an opportunity to make savings on payments, which is core to every business, will be well-received.”

Tyl’s offering encompasses card machines, a phone app for in-person sales, online payments, payments links and QR cards, next business day settlement, a portal for updated sales data and a week-long UK service and support line.

The payments provider also leans on its standing as part of the wider NatWest Group, benefiting from the bank’s network of companies and fintechs. Tyl states that this partnership with FSB enhances ‘trust, security and experience’ within the payments sector.

Mike Elliff, CEO of Tyl by NatWest, remarked: “Small businesses are critical for our economy and our communities. At a time where the cost of trading is rising for small business owners, Tyl by NatWest is delighted to be able to partner with FSB to provide its members with a full range of cost-effective and reliable payment solutions, backed by great service.” 

The partnership follows an active few months for NatWest Group as the bank makes moves in both the B2C and B2B payments spheres. 

So far this year, the group has become the first UK bank on the Crown Commercial Service’s (CCS) new Dynamic Purchasing System (DPS) for Open Banking, invested in fintech Icon Solutions and withdrawn its BNPL services.

In an interview with Payment Expert at Pay360, the firm’s Head of Group Payments Strategy and Research, Lee McNabb, discussed NatWest’s approach to fintech and developing payments technologies.

On the FSB deal, James Holian, Head of Business Banking at NatWest, said: “FSB and NatWest share an ambition to provide strong support for the growth of entrepreneurship and small businesses in the UK, and we are excited and proud to partner with FSB in payments services for its members.”