Bank of America launches direct online payment service with UK fintech Banked

Bank of America Corp. on Feb. 14 launched an online payment solution called "Pay by Bank," in partnership with U.K. startup payment processor Banked Ltd.

The new service allows customers of e-commerce companies, initially in the U.K., to pay directly from their bank accounts online without the need for their credit or debit cards, thereby speeding up checkout and avoiding card processing fees.

Pay by Bank will also be rolled out soon in other countries and regions, according to a company release.

The partnership is part of Bank of America's "continual cycle of technology investment" that helps keep clients at the cutting edge, Matthew Davies, Bank of America's co-head of Global Corporate GTS Sales and head of GTS EMEA, said in the release.

Bank of America led a $20 million funding round for Banked, according to a Bloomberg News report.