Pay by Bank app ("PBBA") is a tool built by Vocalink (a MasterCard company) in order to facilitate direct bank to bank payments in a seamless manner. A merchant who accepts PBBA will be able to request a payment from customers in just a tap, where the customers will receive a SMS text or notification, clicks a link and immediately authenticates themselves via their online mobile banking application and confirms payment.
SmartTrade is the first company to facilitate mobile point of sales with this application so in addition to the card payments features available, this new functionality should make the SmartTrade app more competitive in both cost and security than the standard card reader providers.
Who can pay using PBBA?
Currently all "Barclays Pingit" and HSBC mobile banking app users will be able to send payments to merchants via PBBA. It is possible for any customer with a UK bank account to download the Barclays Pingit app, not necessarily those with a bank account at Barclays Bank. However, in the next few months more UK banks will come live and auto-enroll their customers so that in the near term our merchants will be able to accept payments from millions of customers all over the UK. We will make sure to keep updating you with applicable mobile banking apps.
Benefits of using PBBA
When accepting a payment with PBBA you will be able to make transactions at the low rate of 0.45% per transaction with settlement in 2 days. Furthermore, the nature of the transaction being bank to bank means fraudulent payments are near impossible to make as the customer will need to authenticate themselves via their online mobile banking application on their smartphone. In addition, there is no sharing of personal or bank details by the customer so no risk of this confidential information being used in a fraudulent manner.
A summary of the features and benefits of Pay by Bank app can be found on the web-site.