Traditional banking institutions are very conservative and reluctant to embrace innovation. But they, too, have had to bow to the pressure of digital technology.
The introduction of open APIs to access customer bank accounts has given rise to a new financial mechanism called open banking. Transferring payments using a Trusted Third Party Provider (TPP) has become so fast and secure that many IT-savvy users are switching to using her TPP. Other companies followed suit, noting the benefits and savings of using open banking payments.
What is open a business bank account What simplifies B2B and B2C interactions?
What is the essence of open banking?
A Third Party Provider (TPP) is a financial institution ready to provide fast and efficient payments. The main problem, however, was access to bank customer accounts, which were reliably protected by the banking department.
In 2015, the situation changed according to an EU directive, allowing the use of open APIs to conduct financial operations. Thanks to these technologies and legal solutions, the TPP now interacts with users’ bank accounts with their consent and uses that money to conduct financial transactions.
Who benefits from using Open Banking?
open banking teeth A technology that works based on an application programming interface (API). This mechanism has the right to transfer information from the customer’s bank account to a third party trusted by the bank’s customer in a highly secure format. These include marketplaces, IT companies, FinTech companies, information platforms and many other market participants.
Businesses using open APIs can make it easier for their customers to process payments through open banking.
Open Banking Solution by Payment Gateway Fondy
Payment gateway service provider Fondy offers a range of high-tech solutions that make it easier for businesses to communicate financially with their customers and partners.Implementation of open banking technology with full technical support by Fondi is one of the many financial services the company offers to its customers. Demand for this kind of service has been particularly high since his 2020 due to the pandemic.
Fast, cheap, and reliable Open Banking payments offer many benefits, including:
- Provides payment security.
- Eliminate intermediaries and commissions charged by intermediaries.
- Send money to many clients or partners in a single transaction.
- Consider consumer behavior through access to financial data and more.
Switching to open banking technology makes it easier to reduce payment processing costs, improve exchange rates, accept international payments, and more.
To learn more Integrate If you want to implement open APIs in your business and migrate to open banking technology, contact the Fondy platform for step-by-step instructions and top-notch services.