TrueLayer launches Open Banking-based PayDirect to replace cards

By Sunniva Kolostyak

Open Banking provider TrueLayer has unveiled a new payment method, called PayDirect, to combine on-click verification with instant deposits and withdrawals for streamlined payments processes.

PayDirect is built on Open Banking and the fastest bank payment rails to provide instant payments and accelerates KYC and AML processes, enabling firms to stay compliant while delivering a frictionless customer experience.

FinTechs, banks, trading platforms, WealthTech, e-commerce and iGaming operators will be able to deliver account verification, instant account funding, seamless online payments, instant withdrawals and instant refunds.

TrueLayer, which specialises in building open financial infrastructure, said identity and verification flows and card-based payments typically generate avoidable friction. This affects adoption, retention rates and generates unnecessary costs.

With the addition of Strong Customer Authentication (SCA), more friction is layered op top of cards, delivering poorer customer experiences.

Ossama Soliman, Chief Product Officer at TrueLayer, commented: “As customers experience seamless digital services in other aspects of their lives, their expectations for financial services are also changing. PayDirect builds on our payments expertise to further streamline onboarding, deposits and withdrawals to deliver an experience that is fit for the digital age.”

“The ability to quickly and easily verify a customer’s identity, and move money instantly in and out of an account using bank to bank payments is hugely beneficial to both the customer and the service provider.”

The provider added that through the functions included in PayDirect, TrueLayer will deliver up to 3 times faster onboarding, higher payment conversion rates, lower operating costs, reduced risk and fraud, as well as a fully white-labelled payment method.

Francesco Simoneschi, Co-Founder and CEO of TrueLayer, added: “The race is on to reimagine the way people pay by leveraging Open Payments architectures. We have seen in banking and e-commerce that great onboarding and payments experiences increase conversion, trust, and retention. But many payments journeys today have not been designed for a digital-first world.”

“With PayDirect we’re calling time on cards and their monopoly. We have used our experience and expertise as a leading Open Banking platform to design a digital and mobile-first payment product that combines instant bank payments with instant payouts, refunds and reconciliation capabilities. PayDirect delivers an effortless way to onboard new customers and enable them to quickly initiate payments and withdraw funds. It is the easiest way to create a better, safer and lower cost payments process.”