Bank of America Backs UK FinTech Banked

FinTech Banked has raised $20 million in a funding round sponsored by Bank of America (BoA) to expand its Pay by Bank service to new clients.

Pay by Bank allows internet customers in the United Kingdom to make purchases without using their credit cards and have the money withdrawn directly from their bank accounts at checkout.

Because it eliminates much of the data merchants must store on their clients, the payment method is more streamlined and safe. Cards are avoided, as are the processing costs that come with Visa and Mastercard, because the payments are withdrawn from a person’s bank account.

According to Bloomberg, the way customers pay merchants online has been the same “for a very, very long time,” according to Matthew Davies, Bank of America’s president of Global Transaction Services in Europe, the Middle East, and Africa. He believes it is important to provide buyers with a variety of payment options while shopping online.