Traditional banking institutions are very conservative and reluctant to open up to innovation. Nevertheless, even they’d to succumb to the pressure of digital technologies.
Thanks to the introduction of open APIs that give access to customers’ bank accounts, a latest financial mechanism was created called open banking. Transferring payments through trusted third-party providers (TPPs) has grow to be so fast and secure that many IT-savvy users have switched to their use. Other firms followed suit, seeing the advantages and savings of using open bank payments.
What’s open an organization checking account which simplifies B2B and B2C interactions?
What’s the essence of open banking
Third-party providers (TPP) are financial organizations ready to provide quick and efficient payments. Nevertheless, the major problem was access to bank customer accounts, which were reliably protected by the banking industry.
In 2015, in accordance with EU directives, the situation modified and the use of open APIs for financial operations was allowed. Thanks to these technologies and legislative solutions, TPPs began to interact with users’ bank accounts with their consent and conduct financial transactions with their funds.
Who can profit from using open banking
Open banking Is technology based on the Application Programming Interface (API). This mechanism has the right to transfer information in a highly secure form from customers’ bank accounts to any third parties trusted by the bank’s customers. These will be marketplaces, IT firms, FinTech firms, information platforms and lots of other market participants.
Any business using open APIs could make it easier for his or her customers to process payments through Open Banking.
Open banking solutions from Payment Gateway Fonda
Payment gateway service provider Fondy offers a wide range of high-tech solutions that make it easier for businesses to interact financially with customers and partners. Introduction of open banking technology with full technical support by Fondy is one in every of the many financial services that the company offers to its clients. The demand for such a service has especially intensified since 2020 due to the pandemic.
Fast, low-cost and reliable open banking payments have brought many advantages:
- Ensuring payment security;
- Elimination of intermediaries and their fees;
- Sending money transfers to a big number of shoppers or partners in one transaction;
- Accounting for consumer behavior by accessing their financial data and way more.
The transition to open banking technologies will allow you to reduce payment processing costs, increase conversion rates, facilitate the acceptance of international payments and way more.
Learn more about integrating open APIs for your online business and transition to open banking technologies, contact Fondy for detailed instructions and first-class services.