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What is a payment initiation service? How apps start bank payments for you

By SendPay Business · · 2 min read

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  1. Pick who to pay and type the amount
  2. Tap send and it is on its way
  3. It lands in their account

A payment initiation service lets an authorised app or website start a payment straight from your bank account, with your permission. The firm offering it is called a payment initiation service provider, or PISP. It's one of the two main services open banking made possible.

How a payment works

  • At checkout you choose to pay by bank and pick your bank.
  • You're sent to your bank's app or website and log in there, not with the shop.
  • You approve the payment, and the bank sends it, usually by Faster Payments in the UK.
  • You're returned to the shop with the payment confirmed.
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PISP vs AISP

A PISP starts payments. An account information service provider (AISP) reads your account data, such as balances and transactions, with your consent, for things like budgeting apps or affordability checks. Both need to be authorised by a regulator such as the FCA.

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Compared with cards

Payments go straight from bank to bank, so there are no card scheme fees, and no card details are shared. But card payments come with chargeback rights that a bank payment doesn't have in the same way.

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Where SendPay fits

SendPay platforms let your customers take payments by card through payment links, invoices and subscriptions, and send bank transfers, under your own brand and powered by licensed partners.

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How it works

Your own money app
  1. Name it and pick your colours
  2. Choose what it does
  3. Launch when you are ready

Why sign up

Create your free SendPay account

It's all about creating your own financial platform with ease. Start with a free account today.

  • A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
  • Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
  • A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
  • Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.

Questions people ask

Would pay by bank save me money?

Compare your card fees with pay by bank fees.

Pay by bank savings calculator →
What is open banking?

Letting authorised apps connect to your bank safely.

What is open banking? →
What is pay by bank?

Paying at checkout straight from your bank.

What is pay by bank? →
What is PSD2?

The EU rules that opened up bank data and payments.

What is PSD2? →

Read next

Spotted a mistake or something out of date? and we'll fix it. How our guides are made

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.