Payment Methods Report: “Open Banking takes A2A payments to the masses”
The Paypers just released the 2023 edition of its Payment Methods Report, which provides an in-depth analysis of the latest developments, and dives into how people pay, as well as the technologies that are behind such payment methods. Here’s our recap of this event, before the publication in the weeks to come of the Open Banking/Finance report (which will feature LUXHUB).
In the very introduction of the report, the authors highlight that the adoption of Open Banking and A2A (account-to-account, or bank-to-bank) payments are on the rise, with clear benefits from both e-commerce companies and their end-users.
The advantages of Open Banking payments
“With Open Banking becoming a more conventional, fast, and accessible standard of financial transactions, its live and practical application has spread to open the gates of what is expected to be a global awakening of how companies conduct businesses and how end-users choose to pay”, then explain the experts.
The advantages of this method are numerous: Open Banking Payments are fast, easy to make and more secure than regular card payments. For businesses, it means no card processing costs. Moreover, the payment conversion success rates are exceeding 95%!
The report also highlights that Open Banking payments retain most of the core benefits of account-to-account players, and through the help of APIs, bring some key benefits, notably allowing them to expand beyond the borders of one country. In other words, “Open Banking is finally taking A2A payments to the masses”.
In his article published as part of the report, Nick Maynard (VP of Fintech Market Research at Juniper Research) also underlines that “choosing to offer lower-cost payment types, such as Open Banking initiated instant payments, can substantially lower costs to merchants, as well as potentially reduce the risk of fraud”.
Source: The Paypers