UK-based Lloyds Bank has launched the PayMe transfer system to streamline one-off payments for businesses and improve customer service. What makes PayMe stand out is the fact that it allows businesses to make one-off payments without having to know the beneficiary’s bank details thus enabling payees to receive the funds within minutes.

Specifically, by using this system, banks no longer need to gather or manage account information or register one-off suppliers. To use PayMe, once the payment has been approved, companies can send a secure link to the beneficiary via SMS, QR code or email, and the beneficiary can then input his or her account information. The payment is reviewed and verified, and the funds are sent straight to the beneficiary.

On the payees’ side, the main benefit is that they no longer have to wait up to three business days to receive their funds. The system can also help businesses to minimise their cheque issuance and manual processes, as well as their associated costs. Some potential applications of Lloyds Bank PayMe include one-time vendor payments, goodwill gestures, refunds, volunteer expenses, compensation payouts, hardship payments, and grants.

In the company press release, Lloyds Bank officials talked about Bacs and how it requires a three-day settlement. They also mentioned that some payment solution providers still rely on physical cheques, which come with their own drawbacks. By comparison, PayMe was designed to allow companies to send funds to customers, clients, or suppliers within minutes without having to capture and store account details for one-off payments.

Lloyds Bank’s partnership with Enigio In April 2023, Lloyds Bank partnered with Enigio to support the use of digital documentation in the trade finance industry by leveraging blockchain technology. Following this collaboration, the companies aim to apply Enigio’s trace:original solution for digital documents in the industry. The partnership will also serve as an opportunity to feature documents such as bills of exchange, bills of lading, and promissory notes in a wider range of finance products, including credits and documentary collections.

The process aims to eliminate the need for clients to psychically transfer documentation within trade transactions, which will lead to faster, more affordable, and more secure delivery of trade services. Enigio’s product was designed to allow the creation of digital documents that can be `owned` by an individual. This way, digital documents have the possibility to be used in processes where usually original documents are required.

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