PSPs Unlock Payment Experience | PYMNTS.com
Like many financial innovations, open banking still looked exotic in 2018 when the momentum started to take shape. What the industry did not anticipate was a global crisis propelling the need for new forms of digital payments and financing “anywhere” that quickly moved open banking forward.
Exploring very real aspects of the topic as it currently stands, the June 2021 PYMNTS report Open eCommerce: Open Banking As The New eCommerce Accelerator In The UK And Europe, a TrueLayer collaboration, is a compendium of information on this industry. and this important topic.
“The most advanced open banking solutions provide brands, retailers and marketplaces with an agile, plug-and-play payment and financial data architecture. Open banking APIs allow e-commerce businesses to leverage real-time banking data to fuel customer engagement initiatives. Marketplaces can quickly verify sellers through secure bank-to-bank channels and sustainably expand their audience, ”according to the report. And that’s just the tip of the iceberg.
As for the UK and Europe – where disruptors have taken a lead over other regions – open banking finds its place in the rich and diverse mix of payments and digital solutions that eliminate the inherited constraints with interoperable ease.
Disrupt risk, identity and fraud with open data
The June edition of Open eCommerce provides valuable insight into how payment service providers (PSPs) in particular are themselves innovating with connected banking in ways that were not previously possible. .
With the use case of payment service provider Helcim as an example of how PSPs view the proliferation of open banking in the United States – and the remaining barriers to implementation – the COO, Rob Park told PYMNTS: “Payment providers like Helcim are comfortable with disrupting the market and are ready to embrace open banking. Adopting an open banking system would make it easier for payment companies to assess risk, identify fraud and improve their customer experience.
Ultimately, he sees open banking as a victory for consumers, but modernizing PSPs, FinTechs and traditional banks all have a lot to gain from API-powered connected economy banking architectures.
“Open banking can dramatically improve the quality and security of service for consumers and give them more flexibility in how and where their data is used,” Park said. “Open banking offers new ways to interact with customers and deliver services, but overall, if delivered correctly, it will open up more options and provide better experiences for consumers and end users. . “
Better access, better information
As for what PSPs in the US can expect when open banking becomes big here – it’s practically up to us now – Open eCommerce reminds us that it’s all about the data.
“By using an open banking API, businesses can access granular insights into the buying behaviors of consumers as a whole, which can dramatically improve the relevance and engagement potential of customer loyalty initiatives and retailers. service features, ”according to the new report.
“Better access to consumer preferences and behavioral insights provided by open banking data also means that these companies can create innovation strategies based on data rather than guesswork. Open banking technology is an opportunity for PSPs to innovate quickly in response to new customer demands. PSPs can use open banking technology to deliver instant payment solutions that are secure and deliver robust performance as businesses grow, from supporting a delivery service seeking to offer instant tip payments to clients. employees or a small local restaurant launching an online purchase, in-store pickup (BOPIS) service. “