Nationwide will be the first UK bank to offer the Visa V.me payment system, which allows customers to make payments online without the need to input their bank details.
The service has been trialled by Visa over the past few months and some 1,400 merchants have been set up to receive payments through the platform. Nationwide customers will be joined by other banks “in the coming months", Visa said.
The V.me services work by allowing customers to upload their card details, then, when they want to pay for something online, they can select the V.me option and simply type in their username and password.
Duncan Olby, the senior vice president of e-commerce and V.me Wallet at Visa Europe, told V3 that paying for items in this way had several benefits for both merchants and customers.
“The way people pay today is by filling out a form on a merchant's website, but that’s quite a 1990s way of paying. Merchants find this is a hassle factor for customers and they often see a lot of abandoned payments because of this,” he said.
“For consumers, with more and more payments coming direct from mobile devices, it is also a hassle to try and input card details while holding your phone, and you may not want to do this in public either.”
Olby said paying in this way was also more secure as merchants did not have to be sent card details, instead the payment is just sent through Visa. “Consumers are increasingly concerned about passing out card details online so with this we can shield them from the internet.”
Nationwide customers will be the first to start using their cards on the V.me platform. Other banks will be added soon, as Visa moves to put the technology in the market as quickly as possible, similar to its rollout of chip and pin services, Olby said.
Some of the merchants that have already signed up to receive payments from the platform include Clarks and Currys, Visa said.
Graham Beale, Nationwide’s chief executive, said the decision to embrace the V.me service was part of the push at the bank to embrace technology advancements.
“I’m excited that Nationwide is once again at the forefront of technological innovation by offering the V.me by Visa digital wallet, which will provide our members with a safe, secure and enhanced online shopping experience,” he said.
Visa is currently on a major push to boost the uptake of digital payments, as it expects the use of such services to grow massively in the coming years.
Loon's balloons will bring the internet to remote areas of the country
New clues into the biosphere on Earth in the lead up to the emergence of animal life
Planetary collision might shed light on the chaotic processes behind a star's early development
Success boosted by streamer Ninja and celebrity gamers