What is Open Banking
Open Banking is a sharing of data between different players in the banking ecosystem, naturally authorised by customers, triggered by PSD2 (Payment Services Directive 2), the European directive on digital payments enacted in 2018.
This means that Banks are legally obliged to provide access to current account data via API systems for communication between servers. This can take place via an interface developed by the banks themselves or third-party companies or on behalf of other banks that have developed such technology.
Open Banking in eCommerce
How Open Banking can help your business in digital payments and reconciliations
High-value and B2B payments
Mostly used for B2B sectors where the average order is high and not very convenient via Credit Card
Much more convenient
Compared to the best conditions on Virtual Pos for Credit Cards Open Banking will amaze you
Instant reconciliation
Confirmation of payment is instantaneous and is not linked to the technical transfer times
Simple for the buyer
As with Credit Card payments the buyer will be asked for confirmation via SMS or App to make the payment.
Where do we stand in Europe
According to data collected by Tink, in 2020 almost a quarter of respondents at banking institutions in Europe have activated at least one fintech partnership to access open banking technologies.
The most forward-looking institutions boast up to five different partnerships under their belt. Not only that, more than two-thirds of the sample surveyed (69%) have increased the number of fintech partnerships in 2019. The same percentage (69%) indicated that establishing a fintech partnership will be a priority by 2021.