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Smarter Payment Solutions for the Public Sector and Charities: Your questions answered
The payments landscape is constantly evolving, and new technologies are presenting ever more opportunities for public sector organisations and charities to improve services, streamline processes and do more with less.
Read time: 6 mins Added: 27/02/26
Key questions driving the payments debate
To shine a light on the latest developments in payments, Lloyds alongside VISA hosted a panel discussion last December where an audience of local authority decision makers quizzed our in-house payments experts. The panellists were able to provide valuable insight into the challenges that are topping the agendas of public sector and charities finance professionals.
Technology and implementation
How is technology reshaping the payments ecosystem and unlocking new opportunities for innovation?
Louise Hueting, Managing Director, Head of Payments Product, Business and Commercial Banking, Lloyds: “Open banking is a fantastic example of innovation and competition being driven by new tech. Banks have had to invest in their Application Programming Interface (API) infrastructure, meaning the adoption of open banking is growing year-on-year. That will only continue because customers really value the speed, convenience and efficiency that open banking provides.
Existing technologies can also bring opportunities to innovate through optimisation. We’re talking with clients who are using Enterprise Resource Planning (ERP) systems about how to drive efficiencies.”
How is technology making cash and cheque payments more efficient?
Louise Hueting: “Cash remains a core part of our proposition, and we’ve installed more self-service machines in our branch network so clients can deposit and withdraw cash very quickly and easily whenever it suits them, without having to queue at a counter.
Although the use of cheques is declining, we have introduced a cheque scanning feature on our Business Banking app, so you can pay in cheques without having to visit a branch, and we’ve just increased the daily limit from £10,000 to £20,000. If you're issuing a lot of cheques, we have a solution which enables you to issue an email with a payment link in it. You don't have to hold the recipient's account number.
We’re also working with public sector organisations and charities to think about how we can encourage more digital payments, because we know cash is more costly to process, and that holding large amounts of cash on site comes with an element of risk.”
Local authority resources are often stretched. What can be expected from the implementation journey?
Ross Taylor, Managing Director at Lloyds Cardnet: “Lloyds has recently put more resources into the process, where the timescale for implementation is now typically 10 to 12 weeks, though it can be faster in some cases.
During that period, we have weekly calls to make sure we are on the front foot, resolving any existing issues and looking ahead to make sure that we're foreseeing any potential problems and getting on top of them before they happen. The right level of engagement is key for effective progress and accelerating implementation.
But just as important is post implementation support; once everything is live, we don't just walk away. Customers have a dedicated relationship manager who is there if you need them and will also be proactively scanning for any further opportunities to optimise processes. It's not resource heavy to change payment providers, it's about having the courage to make that switch.”
How commercial cards can help
Understanding the customer: payment and pricing
How do you identify the right payment solution for each customer?
Linda Weston: “It starts with identifying what your objectives are, then we can help bring up the appropriate solution that meets those needs. We’ll work with you to save costs and deliver better outcomes for the parties that you work with, whether they're suppliers or the communities which you serve.
Ben Blackwood, Associate Director, Commercial Cards at Lloyds: “We take a consultative approach to identify the right payment solution for the right payment type.
For example, across the public sector and charities there is still a lot of use of plastic, yet in an e-commerce environment, some online payments really lend themselves to virtual cards, which can provide improved oversight, more control and better reconciliation. Not only does this provide a better service to users, but it also creates back-office efficiencies.”
How important is pricing when choosing a payments provider?
Ross Taylor: “The current payments ecosystem is complex, and price points can vary wildly. Understanding the costs associated with taking a card payment is a challenge for local authorities. Different providers will present that in different ways which might include interchange fees, scheme fees and processing fees.
While the upfront price is important, any savings can disappear very quickly if the implementation doesn't happen well, or if there's an issue that goes unresolved and it starts to absorb more time, resource or cost, since you may not have access to the people who can resolve those issues. Therefore, it’s important to ask lots of questions of your payment provider.
It’s not all about price, it’s about having access to relationship managers who can provide expert service and resolve issues quickly when things go wrong.”
Summary
As the payments ecosystem quickly evolves, it’s becoming increasingly easier for public sector organisations and charities to embrace new payment technologies to help drive efficiency, cut costs, and improve service delivery.
Choosing the right solution starts with clear objectives and a tailored approach that drives innovation, and spots opportunities to streamline processes that deliver better outcomes for organisations and the communities they serve.
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