VocaLink is developing a new payments service for online shoppers.  It is the first UK initiative to give shoppers the combined benefits of improved security and access to the Faster Payments Service.  The service will utilise existing online bank accounts and is expected to be free of charge to consumers.

The new service is designed to increase the convenience of online shopping and gives consumers a faster secure alternative to credit and debit cards.  So how does it work?

Online shoppers are offered the new payment option at the online checkout.  Having selected the Faster Payments option, the customer is invited to log in to their online bank account in the usual way.  The customer is then directed to the payment authorisation page, which is pre-populated with the merchant’s details, the purchase reference number and the amount.  All the customer has to do is to approve the payment with one simple click and payment is effected directly from their bank account.

The new service provides benefits to shoppers and merchants: shoppers have a new faster way to pay directly from online bank accounts, and merchants enjoy improved cashflow and a higher level of system security.