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.

FAQ: Cross-border payments and Open Banking

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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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