Atos Group’s unit Eviden is collaborating with fintech company Ordo and blockchain firm ByzGen to pilot an innovative bill payment service based on open banking principles.
The new intelligent flexi-payment service aims to provide utility providers and other organizations with a seamless and secure method for collecting regular bill payments more efficiently than traditional direct debit and at a lower cost than card transactions. This FCA-regulated platform offers consumers secure and cost-effective payment options, while assisting businesses in reducing expenses, enhancing cash flow, and streamlining operations.
James Sharpe, sales director for digital native business at Eviden, highlights the advantages of open banking: “Open banking-powered solutions offer a lower cost-per-transaction for processing than card transactions and automate account reconciliations to cut down on administrative costs. For large providers, the reduction in transaction fees alone will result in significant savings.”
The service utilizes Ordo’s disruptive Variable Recurring Payments (VRP) system, facilitated by open banking, enabling customers to authorize payments directly from their bank accounts to businesses on a recurring basis. The full-scale implementation of VRP in the UK is anticipated by 2025, at which point Eviden’s open banking solution will be fully deployed for customers.
Eviden’s system monitors customers’ finances through a regulated consent process overseen by the FCA and employs AI to proactively identify, support, and guide users with personalized payment plans. This adaptability means that payments can be tailored to fit each customer’s financial circumstances instead of being restricted to fixed dates, enabling contributions from various funding sources for improved affordability.
This solution not only assists customers but also helps billers avoid the time-consuming and costly process of pursuing failed direct debits. Moreover, it facilitates multiple payments when funds are available, promoting a proactive approach to settling bills. The system allows for contributions from friends or family members and accommodates multiple payees within a single transaction.
ByzGen’s blockchain technology is integrated into Eviden’s platform to enhance data security, compliance, and efficiency while reducing bias in transaction processing.