How do Open Banking payments work across borders?


  • Open Banking payments offer the potential to simplify cross-border transactions
  • Most merchants and PSPs require specialized support to realize the full potential
  • Third party payment technology vendors like Trustly offer the solution


Because it bypasses all the outdated processes connected to card networks, Open Banking payments have the potential to serve as a work-around for cross-border payment acceptance and the payout of refunds.

But on their own, the APIs that make Open Banking possible are no easier to manage than card payments. Open Banking APIs don’t just work – not without an added layer of complexity that few merchants or PSPs can afford to build on their own.

The APIs simply initiate a payment. Initiation-only and API aggregators deliver the basic level of services, but reconciling individual Open Banking payments is challenging. Payments are not always guaranteed, so merchants risk non-settlement.

Plus, with the initiation-only APIs, there’s no support for pay-outs or refunds – that’s where payment technology vendors like Trustly come in.

FAQ: Cross-border payments and Open Banking


Why are online cross-border purchases increasing in the EU?

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What makes online cross-border payments so complicated?

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What are Open Banking payments?

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How does an Open Banking payment flow work, in general?

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Do European banks have to facilitate Open Banking payments?

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How does SCA work with Open Banking payments?

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How do Open Banking payments work across borders?

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How can cross-border expansion be simplified for merchants?

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Are Open Banking payments popular with consumers?

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Why do consumers like Open Banking payments?

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How can Open Banking payments speed up cross-border settlement?

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How do cross-border Open Banking refunds work?

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How can you choose the right Open Banking payments provider?

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