Opening Banking:

The Future of Payments

Chris Heath
February 8, 2024

What is Open Banking?

Open banking is a relatively new technology that is increasingly becoming popular for B2B and B2C payments in both the UK and Europe, It is essentially a API set that allows a third party temporary secure access to a consumer or business bank account, it has been widely used as part of credit checking processes for some time now, however the concept of 'Open Banking Payments' is on the rise and that's what we are going to talk about today.

Open Banking Payments
Traditionally making a bank payment to someone was fairly labour intensive, the Payee would need to provide their bank account details including account number and sort code, business bank account name and sometimes more, the person making the payment would then have to go into their online or telephone banking and set up a one off payment to those account details, this creates a pain point, people delay paying as it is difficult, resulting in more chasing required and longer taken to pay bills.

Open banking payments removes that pain point, the customer receives a Secure Link Services Payment link on their phone and can select 'Open Banking' as the payment option, the link will request payment from the bank account and the payment can be approved by the customer though password or biometric authorisation which is prompted by their online banking app on their phone.

Why Offer Open Banking
Open baking payments are cheaper than credit or debit card payments, most providers charge a fixed fee per transaction rather than a percentage of the transaction value which means that it can be much better value for money especially for large value transactions.

It is much simpler for your customers, they don't need to worry about setting up manual payments with their bank, it makes a bank transfer as simple (or simpler) than a card payment is as all they need to do is pick their bank, approve the payment and authenticate it.

In Conclusion
Open banking payments are perfect for groups or clubs that are currently having to chase payments for membership manually, using open banking payments in conjunction with SLS means we do the hard work of chasing for you, the SLS system will auto chase up the payment regularly until it is paid, meaning less admin for you and faster payments.

to find out more about about Open Banking via Secure Link Services and find a supported payment processor talk to us today