Why open banking payment is better for businesses and their customers
Open banking is the most customer-centric payment solution for many reasons. Firstly, it’s simple; payments are transferred immediately once strong customer authentication is given, without the need to type card details. It takes only a few clicks to confirm the payment with a password, face ID, or fingerprint.
Open banking has taken the user experience to the next level. Making payments has become easier with user-friendly interfaces, instant payment confirmation, and faster withdrawals and refunds. Companies benefit from immediate cash flow and increased conversion rates.
Making online banking payments via strong customer authentication is safer than using credit card details as it eliminates the possibility of fraudsters stealing the card information.
Transaction costs are much lower than credit card payments since there are no intermediaries charging commissions. It also reduces the number of declined payments that can occur from typing incorrect card information. This decreases the number of customer support cases and operational costs.
Open banking has increased the competition and quality of financial services with more transparent, secure, faster, low-cost, and convenient solutions. Within the next couple of years, open banking might even surpass credit and debit cards as the customers’ favourite choice of online payments.
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