Eviden and Ordo pilot open banking-based bill payment platform

Editorial

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The partners say that their intelligent flexi-payment service will give organisations such as utility providers a simple and secure way to collect regular bill payments faster than direct debit and at a lower cost than card-based transactions.

Providing an alternative to card-on-file instructions for bill payments, the FCA-regulated platform is designed to give consumers secure, and affordable payment options while helping businesses reduce costs, improve cash flow, and streamline operations.

“Open banking-powered solutions offer a lower cost-per-transaction to process than cards and automate account reconciliations to reduce administration costs. For large providers, the reduction in transaction fees alone will lead to millions of pounds in savings,” says James Sharpe, sales director, digital native business, Eviden.

The service uses Ordo’s disruptive Variable Recurring Payments system – powered by open banking – to allow customers to authorise payments directly from their bank accounts to businesses on a recurring basis.

The expansion of VRP’s is expected to reach full-scale implementation in the UK in 2025, at this point Eviden’s open banking solution will be extended to full deployment with customers.

The system monitors customers’ finances through a regulated consented sign-up process overseen by the FCA and harnesses AI to proactively identify, support, and guide consumers with personalised payment plans.

The system then enables payments tailored to each customer’s financial situation, rather than adhering to a fixed date, allowing contributions from various funding sources to promote greater affordability.

This, says Eviden, not only helps customers but also lets billers avoid chasing failed direct debits which is time consuming and costly.

The system also supports multiple payments when customers have funds available, encouraging a proactive approach to bill settlement. It even allows contributions from friends or family members towards bills, and accepts multiple payees for a single payment.

ByzGen’s blockchain technology is integrated into Eviden’s platform to improve data security, compliance, and efficiency while limiting bias.