Customers log on to personal online banking using a computer, phone or other mobile device and select "Smart payments". Enter the amount for transfer, select a payment channel (phone number or email) for the recipient and execute the payment. If the recipient has authorised smart payments, the transfer will arrive promptly, just like a regular transfer.
If the recipient hasn't authorised smart payments yet, he or she will receive an invitation (text message or email) to do so. Once the recipient has completed a simple authorisation process, the payor is notified and asked to confirm the identity of the recipient.
It is only necessary to confirm the recipient's identity once - any future transfers simply require that the payor enter the payment channel registered to the recipient. Multiple payment channels can be entered per bank account and more than one bank account can be registered to receive smart payments.
Smart payments can only be initiated from personal online banking but most other steps of the process are accessible through open websites. Customers of Landsbankinn can manage active smart payment channels on the main page of personal online banking, cancel payments and invite friends to authorise use of the system.