Your Guide to Successful Open Banking Payments with Mimo
This quick guide will show you how to make payments with Mimo, provide tips for your first payment, and help you avoid common bank-related issues.
In summary
Enable Open Banking in the House bank
Add the Mimo Balance account as a Beneficiary (Account details in Mimo)
Start with a small first transfer of £1.00 to your Mimo Balance account. This can be withdrawn immediately after if you don’t want to leave it in your Balance account.
Ways to Pay with Mimo
Whether you're paying suppliers or employees, here are the three main ways to use Mimo:
Pay with your House Bank Account: Mimo works with all UK banks. If a bank supports Open Banking, we'll transfer the full amount from your house bank account to the payee.
Pay with your Mimo Balance account: Add funds to your GBP or EUR account and pay from there. Payments made from your Balance accounts do not require bank authorisation.
Pay with Mimo Flex: Defer supplier payments by 30 or 60 days (pending eligibility). Mimo then collects the funds with Direct Debit on the future date.
Completing Your First Payment from your House Bank Account
While Mimo manages the payment process, banks may have their own restrictions.
To avoid issues, add your Mimo Balance GBP account as a beneficiary to all bank accounts you plan to use. Instructions and bank details can be found in the Mimo app. This reduces the chance of delays caused by the bank rejecting your first payment.
Adding a new Beneficiary
Be aware that some banks have limits for first payments to new beneficiaries.
For example, Lloyds Business imposes a 60-minute delay for payments over £5,000 to new recipients. This improves with future payments, but we can't control these restrictions.
💡 Tip: Add Mimo as a beneficiary at least 24 hours before your first payment to avoid delays.
First Payment Bank Limits (Amount)
Some banks limit the amount you can pay to a new beneficiary.
For instance, Barclays Business only allows payments below £7,500 via mobile banking for new recipients.
First Payment Bank Limits (Open Banking)
Some banks don't allow first payments to new beneficiaries via Open Banking. If you're using one of these banks, we advise you to take some steps to prepare your account:
HSBC
Barclays
NatWest
Royal Bank of Scotland
Ulster Bank
Tide
Make a small deposit from your bank account to your Mimo Balance account
To make future payments from your House Bank Account via Mimo run as smooth as possible, we recommend making a small first payment of £1 into your Mimo Balance account.
This can be transferred back as soon as it lands in your Mimo Balance account.
This helps reduce the risk of your bank blocking or holding future payments.
Ensuring Smooth Payments
If you handle large sums or frequent payments, you might encounter bank transfer limits. These limits are in place to prevent fraud. A tip to help:
Avoid making large payments your first transaction, especially urgent ones. Start with a small payment to establish your Mimo Balance GBP account as a beneficiary.
Common Bank Limits
Here are some limits we often encounter:
Barclays Business: £50,000 limit per transfer
Lloyds Business: £25,000 limit for Open Banking transfers
HSBC Business: £25,000 daily outgoing transfer limit
Santander Business: £25,000 limit per transfer
Revolut Business: Only account owners can authorize Open Banking transfers
NatWest Bankline: Open Banking payments need to be enabled in the bank account
Tide: Open Banking not allowed for new beneficiaries, requiring a manual transfer first
Specific Payment Use Cases
Here are solutions for less common scenarios:
Enable 'Authenticate with NatWest' Using Bankline: Follow our step-by-step guide for NatWest's Bankline. Learn more.
If you have more questions, check our Support Section or contact us in the chat, at [email protected], or via the chat widget on your Mimo Dashboard.