FIS, a global leader in financial technology, has announced a strategic partnership with Banked, a leading provider of open banking solutions. The collaboration aims to drive new pay-by-bank offerings for businesses and consumers, leveraging the power of open banking, APIs, and real-time payments services.
Pay-by-bank solutions simplify payments by combining the benefits of real-time payment rails with the flexibility and efficiency of open banking. This allows third-party financial service providers to have direct access to banking data, facilitating digital payments between business and consumer bank accounts without the need for card details, account numbers, or sort codes.
Seamus Smith, Group President of Global Business to Business Payments at FIS, emphasized the growing demand for solutions that enable easier and faster money movement. He highlighted FIS’ commitment to bringing frictionless payments to critical industries in a secure, convenient, and cost-effective manner. The partnership with Banked underscores FIS’ dedication to providing innovative payment solutions to a wider spectrum of industries.
Digital payments are experiencing significant growth, with consumers increasingly adopting digital wallets and mobile payments apps. According to the 2023 FIS Global Payments report, account-to-account (A2A) payments like pay-by-bank generated an estimated $525 billion in e-commerce transaction value in 2022, projected to grow at a 13 percent compound annual growth rate.
Brad Goodall, co-founder and CEO of Banked, expressed excitement about the partnership, emphasizing the mission to make payments better for everyone. He highlighted the opportunity to leverage open banking and real-time payments to offer superior payment experiences to businesses and consumers alike.
In 2023, FIS played a pivotal role in spurring the adoption of real-time payments by completing testing and certification for the FedNow Service. The partnership with Banked builds on this momentum to modernize a payments segment ripe for disruption, promising innovative solutions for the future of digital payments.
