PAY BY BANK EXPANDS WITH WORLDPAY: Mastercard is partnering with leading processor Worldpay to promote the Pay by Bank app, which is offered to merchants by Mastercard-owned Vocalink and enables online shoppers in the UK to pay for purchases using their mobile banking app as a direct debit, MarketWatch reports.
Through this partnership, Worldpay will allow merchants in the UK to offer Pay By Bank as an option beginning in 2019. Worldpay will also leverage the Mastercard Digital Enablement Service (MDES) to tokenize payments, and the processor will expand functionality of Mastercard’s MoneySend payments platform. Mastercard has been working to bolster its UK presence since acquiring Vocalink in 2016, which gave it clear visibility into the direct debit space. Expanding Pay by Bank’s merchant acceptance through more partnerships — it previously partnered with European processor Wirecard — could allow Mastercard to offer its customers more choice. And the solution could be popular among merchants because it allows them to avoid paying contentious interchange fees, which card issuers and networks charge merchants on a per-transaction basis, and have been a point of contention. As Mastercard continues to expand Pay by Bank’s acceptance network, it could see increased volume because the benefits it can provide might attract several merchants.