Traditional banking institutions are very conservative and reluctant to divulge heart’s contents to innovation. Nevertheless, even that they had to succumb under the pressure of digital technologies.
A recent financial mechanism called open banking has arisen because of the introduction of open APIs that give access to customer bank accounts. Transferring payments using trusted Third Party Providers (TPPs) has turn out to be so fast and secure that many IT-savvy users have switched to using them. Other corporations followed them, seeing the advantages and savings from using open banking payments.
What’s an open business banking account that simplifies B2B and B2C interactions?
What Is the Essence of Open Banking
Third-Party Providers (TPPs) are financial organizations ready to supply fast and efficient payments. Nevertheless, the fundamental problem was within the access to bank customer accounts, which were reliably protected by the banking sector.
In 2015, based on EU directives, the situation modified, and using open APIs for the conduction of economic operations was allowed. Because of 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 a technology that operates on the idea of the Application Programming Interface (API). This mechanism has the proper to transfer information in a highly secure form from the bank accounts of clients to any third parties trusted by the bank’s clients. These might be marketplaces, IT corporations, FinTech corporations, information platforms, and lots of other market participants.
Any company that uses open APIs could make it easier for his or her customers to process payments through open banking.
Open Banking Solutions by Payment Gateway Fondy
Payment gateway service provider Fondy offers a wide range of high-tech solutions that make it easier for corporations to financially interact with their customers and partners. The introduction of open banking technologies with full technical support by Fondy is considered one of the many financial services the corporate offers to its clients. The demand for this sort of service has especially intensified since 2020 because of the pandemic.
Fast, low-cost, and reliable open banking payments have shown many advantages:
- Providing payments security;
- Eliminating middlemen and the fees they charge;
- Sending money transfers to a lot of clients or partners in a single transaction;
- Making an allowance for consumer behavior through access to their financial data, and rather more.
Switching to open banking technologies will let you reduce payment processing costs, increase conversion rates, make it easier to simply accept international payments, and rather more.
To learn more about integrating open APIs into what you are promoting and transitioning to open banking technologies, contact the Fondy platform for detailed instructions and top-notch services.