Pay from account with other bank (payment initiation with open banking)

I don’t know if this has been mentioned before but there was something new in my Lloyds Bank app today.

It was time to pay my Lloyds Bank credit card and I noticed a new feature today that lets you pay the card from an account at another bank. At first I thought it was just going to give me bank transfer details to use with another bank but as I progressed through the screens I thought it was going to set up a direct debit. However, I then noticed it said payment would be received in 2 hours. So I continued further and it turns out this is a new “Payment Initiation” feature using open banking.

I was able to enter the amount to pay and then directed to the other bank’s app to confirm the payment. The payment was then made from the other bank to Lloyds Bank and appears on the other bank’s app as “Lloyds Standard Mastercard via Lloyds Bank Payment Initiation App”.

The payment has been received by the credit card as if I had done a bank transfer to it.


This is interesting and useful.

I too have a Lloyds credit card. My Wife and I recently CASS’ed our joint Lloyds account to our Nationwide joint account and the only payment we left for transfer by CASS to Nationwide, was my Lloyds credit card. And so just a couple of days ago, I paid my Lloyds card from my Nationwide account using the CASS’ed payment details. However, with the option of being able to pay my card balance by just logging onto my Lloyds App, then this will save me having to flip between the two to achieve the same aim, so thanks for bringing this to my attention. :+1:


Although I didn’t mention it in my original post, it was a Nationwide account I paid the credit card from using this feature. I do already have my Nationwide accounts set up in the Lloyds Bank app via open banking so that possibly allowed this to work seamlessly.

I was impressed. When I was directed to the Nationwide app Nationwide showed me a screen asking which account to pay from (as I have two current accounts with them) and that was pretty much it. The Nationwide app just authenticated me in the usual way as if I was logging in to check my balances there.

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There are few organisations I have noticed use this including Tesco Bank credit card, Revolut, and Freetrade. It’s a bit spotty though; for example you can’t pay your Tesco Bank credit card from Starling but you can fund your Revolut and Freetrade accounts.


I’m happy to stand corrected here, but you can’t do anything with open banking on Starling with other UK banks? I know when I go into my RBS account and when I had the Lloyds current joint account, Starling just doesn’t show up on their lists. Same with Amex. Currently in my RBS mobile App, I have both Nationwide and Lloyds credit card showing balances as part of mobile banking. Wanted my Starling account on there too, but clearly Starling don’t want to be part of that particular open banking system?

Working from memory here, and happy to be corrected, but I don’t think their OB implementation prevents approved applications from making such transactions.

I know they have locked down what you can do with your personal access token, however.

I hadn’t noticed until I just looked again, but the list of banks you can pay from using the Lloyds app is not the same as the list of banks you can add to the app for viewing the accounts.

Some noticeable differences are Barclays are not on this list, but others not on the main open banking list are.

For the record I would still recommend Direct Debits due to the guarantee:slight_smile: you won’t be able to get money back (short of taking them to court) when you do anything via Open Banking as it’s literally just a bank transfer

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You don’t really need the direct debit guarantee when you are deciding yourself how much to pay? The guarantee is there for when errors are made in the amount taken.

Plus, while we are talking about direct debits and Lloyds Bank credit cards, they have a slightly strange set up for credit cards. They always take the amount detailed on the statement even if you pay it manually early. With every other card I’ve had if you pay it back at least 2/3 days or more before the direct debit would be taken they adjust the direct debit to take that in to account.

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Tesco Bank offers this for ages

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I don’t think it’s that they don’t want to be part of it. But I have read that Starling and Amex both stand out in use of non-standard implementations of open banking. It means it’s more work for others to integrate them.


Not a bank, but you can make open banking transfers like that described by OP from Starling to top up your Trading 212 account. They (T212) call it ‘instant bank transfer.’

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I was going to post this but you beat me to it!

Monzo also have a slightly different API but I believe theirs is much closer to the Open Banking spec, so less of an issue.

The screenshot also strikes me as odd in that Lloyds seem to be using the legal name of some banks instead of the standard branding - not using “M&S Bank”, for example. I wonder why they decided to do that?


I also wondered that and concluded (with no evidence or research) that maybe the name is fetched from the other bank’s open banking system and for legal reasons the full legal name has to appear in those systems.

I don’t think it can be that as First Direct isn’t legally separate from HSBC UK, is it?

Also Halifax appears as just Halifax?

I think it’s just the way they have decided to list them, but it’s still odd. NatWest spelt out in full is especially weird.

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In hindsight I think you are right. Certainly I wouldn’t think “HSBC Bank - Personal” is the legal name for anything.

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MBNA do this as well. It’s really quite annoying. I complained when it caught me out once and got compensation… So, it’s weird they don’t change it

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Not surprising, they are owned by Lloyds and use Lloyds systems.

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MBNA is part of LLoyds Banking Group and it’s also the same with their other credit card brands from Halifax and Bank of Scotland. They are all run by the same department.

Edit: @Seb Snap! :slight_smile:

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Haha, great minds think alike!

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