ClearBank Powers UK Payments Rail Expansion With Airwallex
Banking infrastructure provider ClearBank has formed a partnership with cross-border payments company Airwallex to expand its UK payment capabilities through virtual business accounts and local payment rail access.
Airwallex, which processes payments for over 100,000 businesses globally, will use the collaboration to issue virtual accounts and International Bank Account Numbers (IBANs) under its own brand while accessing British payment schemes including Faster Payments, BACS, and CHAPS.
UK Market Access
Through the integration, Airwallex customers gain access to Confirmation of Payee (CoP), a bank transfer verification system that confirms the recipient's name matches their account details before payment processing.
The system forms part of UK regulations designed to reduce payment fraud.
ClearBank's agency banking solution allows Airwallex to maintain its customer-facing brand while accessing regulated banking services.
The clearing bank provides the underlying payment processing capabilities that enable non-bank financial institutions to offer banking services.
Technical Integration
The integration utilises ClearBank's cloud-based infrastructure to connect with UK payment schemes.
Faster Payments enables near-instantaneous transfers between British bank accounts, while BACS handles direct debits and credits with two-day settlement. CHAPS provides same-day settlement for high-value transactions.
The implementation focused on rapid deployment of services.
“Our priority is to provide businesses with fast, flexible and seamless financial services. ClearBank's agency banking solution aligns perfectly with our vision, allowing us to enhance our product offering in the UK while maintaining our brand identity,” says Vivien Cheung, Head of Financial Partnerships, EMEA at Airwallex.
Vivien adds that “the team's deep understanding of our business needs and their speed of execution have been invaluable throughout the partnership development and integration process”.
The collaboration reflects increasing demand for embedded banking services, where non-bank financial institutions integrate regulated capabilities into their platforms.
This model enables fintechs to offer banking services without obtaining their own banking licence. The arrangement signals opportunities for further collaboration between the companies.
European Expansion
Both companies maintain regulated entities in the Netherlands. Airwallex operates as an electronic money institution through Airwallex (Netherlands) BV, authorised by De Nederlandsche Bank.
ClearBank Europe N.V. functions under European Central Bank authorisation and De Nederlandsche Bank supervision.
“We're proud to partner with Airwallex as the business enters its next phase of growth. Our unique combination of innovation and security was essential in supporting the premium customer experience that Airwallex is looking to provide,” says John Salter, Chief Customer Officer at ClearBank.
Airwallex delivers on expansion promise
Airwallex’s partnership with ClearBank delivers on aims set out by Pranav Sood, Executive General Manager for EMEA at Airwallex, in comments made exclusively to FinTech Magazine in 2024.
Speaking at Money20/20 Europe, Pranav said: “Airwallex is truly becoming a global company… we’re expanding our infrastructure quite significantly.
“Against a tough macro environment, our consistent growth in EMEA is a testament to our strong product market fit and innovative product stack.”
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