TALLINN – Estonian banks in cooperation with the Latvian central bank have brought to the market a new inter-bank name payment solution that enables payments between private customers to be made only on the basis of the recipient's phone number.
Initially, the service will be available in the mobile applications of Swedbank, SEB and Coop Pank and will also be made available to LHV customers in May, the Estonian Banking Association said.
The name payment will be processed as an instant payment if possible. "Although the new convenience service can initially only be used by customers of some Estonian banks, the solution is open to all banks," Kaspar Loog, head of the Banking Association's settlements working group, said in a press release.
Estonian banks launched the new service in cooperation with the central bank of Latvia, which manages the register of telephone and account numbers of both Estonian and Latvian bank customers. Harijs Ozols, head of the information systems department of the Latvian central bank, said that name payments will hopefully soon become a new standard throughout the Baltics, similar to instant payments.
"The Baltic states have been leaders in innovative financial solutions throughout the euro area and we intend to continue in the same spirit. Innovative financial market infrastructure is a competitive advantage for our companies, which contributes to the strengthening of the economy in Estonia and Latvia," he added.
Mobile-based real-time payments allow participating banks to offer new opportunities for financial technology companies, e-commerce, commerce and other sectors to develop services and improve the customer experience.
To use the new service, customers must activate the name payment settings in their bank's mobile application.