FIS forms strategic partnership with Banked for Pay by Bank

US-based FIS has teamed up with Open Banking solutions provider Banked to be able to launch new Pay by Bank offerings to consumers and businesses, as digital payments take off in the US.

Through their strategic partnership, FIS and Banked will create new Pay by Bank solutions, leveraging Open Banking, APIs and real-time payments services to do so.

Pay by Bank solutions enable businesses and consumers to make payments directly between business and consumer bank accounts without the need for card details, account numbers or sort codes.

“Corporations and consumers are clamouring for solutions that move their money easier and faster, and as Open Banking and fraud prevention mature, FIS is in a unique position to start offering Pay by Bank solutions for both businesses and consumers,” said Seamus Smith, group president, global business to business payments at FIS.

Account-to-account (A2A) payments, like Pay by Bank, generated an estimated $525 billion in 2022 ecommerce transaction value alone and, according to the 2023 FIS Global Payments report, are projected to grow at a 13% compound annual growth rate.

New research conducted among 2,000 US adults last year and published by Temenos found that 71% have already adopted mobile or online banking for payments, while 58% expect all payments to be digital, rising to 67% among millennials.

Brad Goodall, founder and chief executive officer of Banked

“Partnering with Banked is a proof point of FIS’ commitment to bring frictionless payments to a wider spectrum of critical industries in a secure, convenient and cost-effective manner and complements the investments we’re making in next-gen payments infrastructure,” Smith added.

Brad Goodall, co-founder and chief executive officer of Banked, said: “Together, we are enabling businesses to leverage the power of Open Banking and real-time payments to offer their customers a superior payment experience.

“FIS takes a highly innovative approach to solving real pain points for their clients. They see the value Pay by Bank solutions can bring for a variety of use cases now and in the future, and we are excited to build out the partnership and bring new payment capabilities to market.”

Last year, FIS became one of the first fintechs to complete testing and certification for the US Federal Reserve’s new instant payments system FedNow, which went live in July.