Traditional banking institutions are very conservative and reluctant to open up to innovations. However, they also had to succumb to the pressure of digital technologies.
Thanks to the introduction of open APIs that provide access to customer bank accounts, a new financial mechanism called Open Banking has emerged. Sending payments through trusted third-party providers (TPPs) has become so fast and secure that many IT-savvy users have switched to them. Other companies followed, realizing the benefits and savings of using open banking payments.
What is a Open a business bank account that simplifies B2B and B2C interactions?
What is the essence of Open Banking?
Third Party Providers (TPPs) are financial organizations that can offer fast and efficient payments. The main problem, however, was access to bank customer accounts, which were reliably protected by the banking sector.
In 2015, according to EU directives, the situation changed and the use of open APIs for conducting financial operations was allowed. Thanks to these technologies and legislative solutions, TPPs began to interact with users’ bank accounts and conduct financial transactions with their funds with their consent.
Who can benefit from using Open Banking?
Open Banking Is a technology that works on the basis of the Application Programming Interface (API). This mechanism has the right to transfer information in highly secure form from customers’ bank accounts to third parties trusted by the bank’s customers. This can be marketplaces, IT companies, FinTech companies, information platforms and many other market participants.
Any company that uses open APIs can make payment processing easier for their customers through Open Banking.
Open banking solutions from Payment Gateway Fondy
Payment gateway service provider Fondy offers a variety of high-tech solutions that make it easier for companies to interact financially with their customers and partners. The introduction of open banking technologies with comprehensive technical support by fund is one of the many financial services that the company offers to its customers. The demand for this type of service has particularly intensified since 2020 due to the pandemic.
Fast, cheap and reliable open banking payments have shown many advantages:
- Provision of payment security;
- elimination of middlemen and their fees;
- send money transfers to a large number of customers or partners in one transaction;
- Taking consumer behavior into account by accessing their financial data and much more.
By moving to open banking technologies, you can reduce payment processing costs, increase conversion rates, make it easier to accept international payments, and more.
learn more about it integrating If you are looking to integrate open APIs into your business and transition to open banking technologies, contact the Fondy platform for detailed instructions and world-class services.