What are Open Banking payments?

 

  • 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

 

Open Banking payments, also referred to as online banking payments or online banking e-payments (OBePs), offer consumers the fast and convenient option to pay directly from their bank account without a debit or credit card. 

The “open” part of Open Banking involves allowing third party fintech businesses to securely access bank account information, such as via application programming interfaces (APIs) .

An API is a technical specification that  sets rules for how software components interact, allowing systems of different companies to efficiently work together. Today, third-party fintechs and payment providers are able to connect securely with the customer’s online banking portal to proceed with a payment through APIs or secure modified customer interfaces (MCIs).

Leveraging APIs or MCIs, third party vendors can add innovative software, applications and services on top of a bank’s platform. That includes Open Banking payments services, which were originally designed specifically for online payments, but which today are also finding their way into the physical world.

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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Do you need support selling Trustly to your merchants?

Do you want to add Trustly to your APMs? Get in touch with our dedicated PSP team.