diff --git a/lib/poundpay/rails.rb b/lib/poundpay/rails.rb
index ae43a90..b31a9ad 100644
--- a/lib/poundpay/rails.rb
+++ b/lib/poundpay/rails.rb
@@ -3,8 +3,8 @@ module Poundpay
     def self.configure_from_yaml(path)
       pathname = Pathname.new Rails.root.join(path)
       raise ArgumentError.new "File does not exist: #{pathname.to_s}" unless pathname.exist?
-      config = YAML::load_file(pathname)[Rails.env]
+      config = YAML::load(ERB.new(File.read(pathname)).result)[Rails.env]
       Poundpay.configure_from_hash(config)
     end
   end
-end
\ No newline at end of file
+end
diff --git a/spec/fixtures/poundpay.yml b/spec/fixtures/poundpay.yml
index dbe8e43..705374f 100644
--- a/spec/fixtures/poundpay.yml
+++ b/spec/fixtures/poundpay.yml
@@ -1,6 +1,6 @@
 development:
   developer_sid: DV0383d447360511e0bbac00264a09ff3c
-  auth_token: development_auth_token
+  auth_token: <%= "development_auth_token" %>
   www_url: https://www-sandbox.poundpay.com
   api_url: https://api-sandbox.poundpay.com