As we get closer to the era of Open Banking, when high street banks will have to exert more effort in order to keep up with newer and more digital competitors, Barclays is the most recent major bank to turn to a startup.
The bank is currently working with a UK fintech called Flux, for producing digital receipts, initially in a trial with about 10,000 customers who are among its first product testers but with plans to have it in the hands of its 5 million mobile users.
They will receive app alerts in real time with purchase details when they are shopping, with the concept that it will be able to offer users greater control over their spending since they know exactly what their money is going on.
The trial will also see EAT, a lunch spot, offered the ability to issue digital receipts through Barclaycard.
Flux, which is already working with digital challenger banks namely Monzo and Starling, connects the information between bank cards and point of sale software in order to provide more information than that typically found on a bank statement with regards to transactions.
It is understood to be one of the first times that Barclays has embraced technology in practice from a startup that has been a part of its fintech accelerator.
“We believe that Flux is the next biggest innovation for retail payments since contactless[,” stated Matty Cusden-Ross, the co-founder and chief executive of Flux.
“Nobody wants to keep track of hundreds of bits of paper in the 21st century. We are determined to digitise the world’s receipts by linking to how customers pay anyway so we don’t change behaviour at checkout.”
The biggest high street banks in the United Kingdom will soon have to begin making customer information available (with permission of the individual) to third parties who will begin using the data to produce new products and services. The Open Banking rules that were ordered by the market regulator in order to increase competition will be imposed from the start of next year.