Open Banking payment provider Ecospend has revelaed that more than 94,000 customers have used its 'Pay-by-Bank' technology to make £123m in Self-Assessment payments via the HMRC app since February 2022. Ecospend’s partnership with HMRC marked the first time that an Open Banking payment method had been embedded within a government department’s system.
In October 2022, more than 6,700 Self-Assessment customers paid almost £5.9m in tax via Ecospend’s 'Pay-by-Bank' technology, compared to around 2,500 customers in February 2022, who paid £1.8m. This means that over the course of eight months, the volume of transactions per month grew by more than 2.5 times, while the value of transactions per month tripled.
Payments made using the app are sent directly from the taxpayer’s bank account, using validated HMRC details. This means that in addition to increased speed, less human error and cost savings, paying this way has the potential to reduce fraud as money is transferred without the need to share card or bank details for either party.
“The rapid adoption our Open Banking payment solution through the HMRC app is hard evidence that account-to-account payments are the best way to meet consumers’ expectations for a fast and simple payment journey,” said Ecospend CCO, James Hickman. “We hope that the success of our work with HMRC is a clear demonstration of the benefits that Open Banking can provide to the public sector, businesses and consumers alike.”