FundBy Bank and similar QR code based Faster Payments

hoc

QR code based payments seem to be coming to the UK. Lloyds has developed FundBy Bank. Any feedback on such a service? For the payer it saves having to enter in sort-code and account details, but does it include confirmation of payee? Is it any better or worse for FP in terms of protection? What's the benefit for the payee? How does the fee compare to other forms of payment?

Band7

AFAIK, it's just an easier way to make a Faster Payment. No protection at all. So unless you know the payee is trustworthy, it's risky.

wmb194

hoc said:

QR code based payments seem to be coming to the UK. Lloyds has developed FundBy Bank. Any feedback on such a service? For the payer it saves having to enter in sort-code and account details, but does it include confirmation of payee? Is it any better or worse for FP in terms of protection? What's the benefit for the payee? How does the fee compare to other forms of payment?

From the quote below re AJ Bell signing up to it last year it doesn't sound much different to using open banking to initiate a transaction in the way that brokers like e.g., Freetrade and Trading212 can. They key will be where you obtain the QR code from. I presume it'll be the same as Freetrade and T212 i.e. after you've logged into their apps or sites. If you trust that process I don't see why I'd worry too much.

The benefits for the payee include speed and you don't have to enter the details yourself and worry you've made a mistake.

"The technology enables customers to select how much they wish to invest directly from the AJ Bell Youinvest app or website. The process then automatically redirects customers to their online bank account, where they can view their balance and authenticate the transaction."

https://www.finextra.com/newsarticle/40854/aj-bell-signs-for-lloyds-fundby-bank-tech