Nutmeg partners with TrueLayer for payments in wealth management first

By Sunniva Kolostyak

Nutmeg, a digital wealth manager, has become the first of its kind to offer Open Banking payments in the UK, by partnering with API provider TrueLayer.

Through the partnership, Nutmeg’s customers will be able to access a quicker way to pay with multiple layers of security. TrueLayer, the financial API provider, enables payments through their mobile or online banking, meaning it can come directly from the user’s bank or building society.

The integration of TrueLayer’s payment API means Nutmeg is the first wealth manager in the UK to offer customers the ability to use Payments Initiation, an Open Banking payments feature, to contribute to their investments.

The payments industry is still dominated by card payments, but bank transfers are the best and fastest way to get money into a Nutmeg account and therefore into the market, Matt Gatrell, Chief Operating Officer at Nutmeg, explained.

“However, these transfers have previously had an undesirable user experience. But banking is becoming more user-centric, with solving real user problems at the heart of fintech roadmaps. With this in mind, Nutmeg has worked with TrueLayer to launch Open Banking payments for customers – reducing a lengthy user process to just a couple of taps,” Gattrell said.

“We know customers want their investments to be as tech-enabled and digitally seamless as other aspects of their life, so we’re committed to continuing to lead the industry by being the first to add new features, like Open Banking payments, to help people manage their finances.”

The banking APIs initiates transfers from one account to another, allowing vendors, like Nutmeg, to pass payment details to the user’s bank via a third-party payment initiator. The user will only have to log in to their bank and confirm the payment to their Nutmeg account.

Francesco Simoneschi, CEO and Co-Founder of TrueLayer, said: “Nutmeg is showcasing yet another innovative application of Payment Initiation – the killer use case for Open Banking. Simplifying and speeding up processes such as payments makes a tangible difference to consumers. It helps them to have much more control and choice with their finances. This is a fundamental goal of Open Banking and another step forward in its wider adoption.”