This limited uptake has restricted the industry from benefiting significantly from the technology, such as reduced fees, instant access to cash flow, and elimination of chargeback risk.
Underpay has adopted a consumer-centric approach to this technology, creating a product and business model focused on a straightforward question: why should consumers opt for Open Banking payments over traditional card methods?
Dima Tarasenko, Co-Founder and Co-CEO of Underpay, stated: “Consumers just want the cheapest, fastest, and safest way to pay, and merchants want to sell easily and to sell more. The technology is only important in the context of serving those goals.”
Initially, Underpay will collaborate with growth-focused direct-to-consumer (D2C) brands that appeal to younger consumers. This demographic is increasingly moving away from credit cards, turning instead to Buy Now, Pay Later (BNPL) schemes for their credit needs or opting for debit card payments. Underpay aims to capture the debit card segment of this market by offering simple, “no-strings-attached rewards on debit purchases.” Users can earn 1% back in Underpay points when they pay with any of the 20+ major UK banks through Underpay.
Founded in early 2023, Underpay has secured £200,000 in angel investment and has garnered considerable consumer interest, amassing thousands of sign-ups to its waitlist. As a Shopify Payment Partner with direct integration, Underpay launched its payment method with several merchant partners last week.
The company now intends to rapidly expand its merchant network and challenge the prevailing payment norms.
Dima Tarasenko remarked: “The consumer credit system is fundamentally broken. Lots of people get a credit card just for the rewards, and there are millions of people who don’t have access to credit cards and thus earn nothing at all. We think we can provide a genuine credit-free alternative to all of those consumers while helping our merchant partners do what’s most important to them – find new audiences for their products and grow their business.”
