sezer okul

JJ chief product officer Sezer Ozkul said the new open banking feature had seen ‘an incredibly fast uptake’

Over 45% of JJ Foodservice customers are placing orders using the company’s pay by bank feature, just four weeks after it launched, The Grocer can reveal.

The wholesaler said uptake of the open banking system had exceeded expectations since its November launch, and was well above the industry average of 20%.

The new feature, which JJ developed in partnership with open banking provider Ecospend, allows customers to pay for orders directly from their business account, rather than through a traditional credit card transaction.

“Just four weeks after launching Pay by Bank, 45% of our online shoppers have chosen it as their payment method – that’s an incredibly fast uptake,” said JJ chief product officer Sezer Ozkul.

“Our Pay by Bank promotions and educational marketing campaign shows customers that it is safe, secure and the most cost-effective way to pay.

“We are inviting all our suppliers to back the Pay by Bank promotion to help us keep passing on great prices to customers at a time when they need it the most.”

Ecospend CCO James Hickman said: “Our partnership with JJ has been a phenomenal success, and an example to the industry of the benefits which innovative new technology can bring to customers, as well as the efficiencies it can create for your own business.

“These are truly impressive numbers and indicative of the advantages of open banking technology to all.”

It comes as average credit card interchange fees have increased across the industry in the past year, due to providers ramping up efforts to sell corporate cards, which often carry fees in excess of 2%.

The problem led Time Wholesale Services MD Sony Bihal to ban cards with interchange fees above 1.5% altogether.

Meanwhile, The Grocer understands other wholesalers are exploring the potential of implementing open banking systems.

It is expected that the use of the technology by JJ will see the business save hundreds of thousands in credit card interchange fees every year.