United Wholesale Scotland (UWS) is on track to save £500,000 a year in card transaction fees after implementing open banking, The Grocer can reveal.
The open banking solution, which UWS launched in January in partnership with technology company Echo Pay, allows customers to fund orders directly from their business account.
This method of payment is increasingly popular in the industry as it incurs much lower charges for the wholesaler.
UWS said uptake for the system had been better than expected, with more than 20% of customers now using open banking.
Based on current projections, around £20m worth of sales will be processed using the new payment method this year.
However, the company said it would be targeting a figure of at least £50m per year in the future as retailers continue to switch, the equivalent of around 18% of turnover.
“We will be investing all the savings made from implementing open banking back into price, so ultimately the retailer is going to win,” said UWS MD Chris Gallacher.
“It’s easier to use Echo Pay, and it doesn’t cost the consumer at all so it’s a very positive thing. Of course, no one likes to change what they’re doing initially but the uptake shows it’s really working.”
In November, The Grocer reported average interchange fees for wholesalers had soared in the last few years, causing businesses to explore alternative payment options for customers.
No comments yet