Solutions

Open Banking

Open Banking enables fintechs to use APIs to connect their services to financial data. Whether you are looking for payments initiation, or account information, or open banking application and API can provide you with everything you need to ensure your payments are processed in real-time.

Open Banking for businesses

Whether it’s powering investor experience, car-selling platforms, or payments infrastructures, many organisations are turning to open banking to meet their finance and administration needs. The guiding force behind many of Europe’s most promising new technologies, open banking is giving businesses more power to manage their money and information.

Open banking offers a host of advantages compared to cards, manual bank transfers, digital wallets and other payment methods.

These include:

Higher conversion & acceptance rates

Open banking gives peace of mind with it's 95 percent payment success rate, compared to traditional card gateways which face a five to 14 percent failure rate. OB also eliminates the need for tedious data entry, providing a seamless, mobile-first customer experience.

Faster settlement

No more waiting for the funds to settle into your account... While cards and Direct Debit payments can take days for funds to settle, open banking payments provide instant settlement, ensuring that companies receive their money when they need it.

No chargebacks for disputed transactions

Processing payments can be a pricey proposition, but open banking takes cost out of the equation for merchants. Payment APIs lack both the transaction fees and operational costs of other methods. Businesses can save up to 80% on fees compared to cards.

Lower fees

Processing payments can be a pricey proposition, but open banking takes cost out of the equation for merchants. Payment APIs lack both the transaction fees and operational costs of other methods. Businesses can save up to 80% on fees compared to cards.

Bank to Bank Immediate Payments

Bank To Bank Immediate Payments, the new way to pay and be paid is enabled with Open Bank technology, the existing Faster Payments money transfer network used by banks and backed by Open Banking legislation.

This means:

  • No Merchant Fees 
  • No Card Reader 
  • No Minimum charges 
  • No Charge backs 
  • No Insufficient Funds Failure 
  • No Waiting for your money

PSD2

The European Union’s Second Payment Services Direct (PSD2) came into effect in January 2018. It is designed to make open banking possible and secure, by: 

  • Enforcing higher standards of security around online transactions through multi-factor authentication (MFA). 
  • Requiring banks and other financial institutions to enable account holders to grant third-party applications permission to access their account and payment data. 
  • Provide API’s  
  • Promote open innovation (allow Third Party Providers to develop new products and services) 

Open Banking enables fintechs to use APIs to connect their services to financial data. Launched in 2018, it marked a shift from a closed data model to an open one – in which data can be shared between different members of the banking ecosystem, with authorisation from the customer. 

In a sense, Open Banking has forced banks to give customers increased ownership of their own financial data by allowing them to connect their data to other regulated providers – for example, a third party money management app which can display their transaction information and balances in one place. It has also opened up many opportunities for fintech innovation. 

While these opportunities are exciting for banks, consumers and for fintech innovators alike, Open Banking has posed a number of security risks which PSD2 aims to reduce. 

Open Banking was mandated by the Competition and Markets Authority (CMA) in its Retail Banking Market Investigation Order 2017 (the CMA Order) following its investigation into competition in UK banking.  

CMA9

The CMA9 are the nine largest banks in the UK, based on their account volumes: Lloyds, Barclays, Nationwide, RBS, Santander, Danske Bank, HSBC, Allied Irish Banks and Bank of Ireland.

AISPs (Account Information Service Providers)

This refers to any business that uses a customer’s account information to aggregate their financial information in one place, to help them track their spending or plan their finances. Examples of AISPs include Yolt and Money Dashboard. 

AISPs (Account Information Service Providers)

This refers to any company that initiates online payments on behalf of the user, offering an alternative to the use of a card or online banking.

API

We’ve provided two feature rich documented APIs:

  • Payments Initiation – to enable Account to Account open banking payments 
  • Account Information  – to enable Account information 

Please call or email us for further information.

Pricing

Product FeaturePer Transaction
PISPstarting at 20p and decreasing for volume
AISPstarting at 20p and decreasing for volume
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