ClearBank and TrueLayer reveal closed-loop payments partnership results

ClearBank has revealed the results of its work with TrueLayer on closed-loop payments in the UK, with payment volumes increasing by seven times since the debut of the collaboration in January 2023.

Open Banking payments provider TrueLayer wanted to improve the end-to-end payment journey with a closed-loop product combining instant deposits with a seamless withdrawal and refund process.

After examining the market for a technology-focused banking partner for merchant accounts and direct access to the UK’s Faster Payments System (FPS), it partnered with ClearBank.  

ClearBank facilitates all the underlying product aspects of merchant accounts where the funds are held, including seamless reconciliation that removes the previously manual or semi-automated process of matching funds received to their corresponding transaction.

Virtual merchant accounts provide TrueLayer with a straightforward structure to manage millions of merchant accounts, each with a unique IBAN. Through connectivity to FPS, ClearBank then enables TrueLayer to instantly payout to the bank account that made the initial transaction.

Merchant demand for the product has been reflected in the results – within just a few months after its launch, the solution was processing millions of pounds of transactions. It has continued to see significant year-on-year growth, with payment volumes increasing seven times since January 2023.

Find out more about ClearBank’s capabilities from Paul Staples, group head of embedded banking at ClearBank, who will be speaking in the powerhouse debate ‘From Open Banking to embedded finance: Is it time to get off the fence?’ on the Open Banking for Good Stage at Open Banking Expo UK & Europe on 15 October.

ClearBank is an event partner of Open Banking Expo UK and Europe, taking place at the Business Design Centre in London on 15-16 October. Click here to find out more about attending, exhibiting and sponsoring.