Open Banking Platform Noda Pay Launches

Fintech company is now available in the UK and is in beta within the European Union. It also has plans to enter North America and Singapore early next year. 

London-based fintech firm Noda Pay has officially unveiled its open banking payments platform for businesses.

The platform is now available in the UK and is in beta within the European Union (EU). The fintech startup has projected annual revenue of $800,000 (£603,000) and has plans to enter North America and Singapore early next year.

Noda Pay is backed by Social Discovery Ventures, an international holding company and investment fund for technology companies.

Noda Pay spokesperson Brian Fitzgerald comments: “With inflation rates soaring in many parts of the world, businesses need to save on expenses wherever they can. Paying upwards of 3% to receive payment is no longer acceptable. Noda Pay cuts out the intermediaries in bank payment processing, saving businesses up to 2% per transaction.”

According to the tech company, there are also no chargeback fees.

Noda Pay launched in private beta within the UK in May this year.

It offers various online payment services, including direct payments from the payer’s bank account to the merchant’s bank account without intermediaries (such as Visa, PayPal), and alternative payments from credit cards, online wallets, cryptocurrency, etc. In addition, Noda Pay provides APIs for integration with other payment platforms.

Along with its international ambitions, the startup is looking ahead. There is no timeline, but future plans will allow businesses to be able to view a payer’s identification and checking account balance during pre-orders. Plus, the platform will enable the payment of invoices by short links and QR codes. Noda Pay is also developing smart contracts connected to banking data and other ways to identify customers for cross-platform applications and services.

In other open banking news today (15 December), NatWest made the industry’s first open banking variable recurring payment (VRP) with the help of TrueLayer.

VRPs are an additional open banking API that the nine largest UK banks have been instructed to build by the Competition and Markets Authority (CMA) for sweeping. They support third party providers (TPPs) like TrueLayer to initiate a series of payments for a customer of variable amounts and at variable intervals.

According to TrueLayer, this is a change to the current open banking status quo where TPPs can only initiate single immediate payments and customers have to authenticate each payment separately. The new requirement from the CMA means TPPs can provide recurring payments for any customer that banks with one of the nine biggest UK banks.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.
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