Lloyds Bank has introduced a kiosk for hotels in an effort to enhance pay-by-bank systems for customers. This collaboration with Lolly, a hospitality technology company, showcases their commitment to improving payment methods. The demonstration will take place at the Open Banking Expo in London.

Simplifying Payments

The new system enables travelers to pay directly from their bank accounts using their mobile banking app. Upon checking out, customers can choose the pay-by-bank option, scan a QR code, and complete the payment effortlessly. The real-time transfer of funds may help reduce transaction times and processing fees.

Addressing Consumer Skepticism

The growth of pay-by-bank services in the UK has been notable, as evidenced by Stripe’s successful expansion into France and Germany. However, some consumers question whether this technology offers sufficient benefits to outweigh any inconvenience involved.

“Consumers can already use their debit card for payments,” says Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “What advantage does following extra steps with a kiosk offer if the result is the same as paying with a debit card?”

Apgar suggests that Lloyds might need to provide incentives like discounts or free treats to encourage wider adoption, but the costs could potentially outweigh the savings on card fees.

Strategic Positioning

Lloyds’ move also reflects their desire to stay ahead in payments innovation. In August, they launched a barcode-based cash deposit tool with a similar structure for self-service kiosks. This strategy aims to position Lloyds as an innovator in the market.