American Express announced the launch of an open banking product called Pay with Bank Transfer, which allows current account holders to pay for purchases online and on-the-go directly from their bank accounts, whether or not they are American Express cardholders. 

American Express is partnering with several leading merchants that operate in the U.K. that span across multiple industries, including travel agency chain Hays Travel, onling fundraising platform JustGiving, Oak Furnitureland, home entertainment retailer Richer Sounds, Royal Lancaster London hotel and Thai Airways.

"With consumers making a growing proportion of purchases online, the product offers a new, simple and secure way to pay for goods and services online and on the go from a smartphone or other connected device," American Express spokesperson Melissa Filipek told Mobile Payments Today via email. 

American Express is operating as a Payment Initiation Service Provider under PSD2 regulations, she said. Consumers will be able to make online payments and have the funds immediately sent to merchants, and consumers will be able to view their current account balances directly before confirming payment, she said. 

Cover image courtesy of American Express.