How can Open Banking payments speed up cross-border settlement?
- Funds can be validated and transferred faster than cards
- With the right payment technology vendor, settlement can be instant
Because of the drawn-out process that card payments go through, you don't know when the cross-border payment settles. This makes visibility of funds and payments performance a real pain. Open Banking payments, when paired with instant payments, can improve settlement times for PSPs and their merchants.
One advantage of Open Banking payments is that they should be able to use the instant payments rails. If the money can be instantly moved, or at least validated via the Open Banking payment provider, merchants can fulfill orders faster and with more confidence. PSPs can see how merchants are doing and offer well-informed advice where needed.
And, of course, without all those additional companies and the card schemes getting involved in the payments process, cross-border payments fees become far less painful.