Mode is set to launch an Open Banking driven payments solution which enables online payments by scanning a QR code.

The LSE-listed FinTech group said that the solution, which allows e-commerce merchants to offer instant payments, will be available in the second quarter of 2021.

The QR code payment will remove the need for entering card details, and is aimed at providing merchants with an alternative to rising card interchange fees and boosting loyalty amongst consumers.

The solution will be initially available in the UK, with launch partners set to be announced in the coming months, but Mode is also considering an expansion into Europe.

Mode said the new feature would allow customers to manage traditional money and digital assets such as Bitcoin, make instant payments, earn rewards in Bitcoin and receive personalised offers from merchants, all in one app.

The solution removes the need for customers to enter their card details or CVVs at checkout.

With a scan of a QR code or just a click of a button, the payment will be processed via the Mode app. Payments will be authorised in real time through biometric security and Strong Customer Authentication (SCA).

Later this year, Mode will also launch a "fast payments" solution enabling customers who don't have the Mode app to also make purchases from e-commerce merchants accepting Mode.

Merchants will also be able to leverage Mode's Bitcoin Rewards solution to incentivise customers with one of the world's most sought-after assets when they transact.

Rita Liu, chief commercial officer at Mode, said: "Today's announcement is an exciting step in our mission to disrupt the payments and loyalty landscape.

“The customer and merchant relationship is highly fragmented, resulting in inefficiencies and additional costs; our Open Banking powered payment solution, and the ecosystem within which it will exist, is genuinely disruptive. We've had a fantastic response so far from both customers and merchants on this new proposition, and look forward to building our solution to meet this demand.”

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