Open Banking Report 2021
Download report
This paper provides key insights about how Open Banking reinvents business models and features a global infographic and industry mapping of key players in Open Banking.
ACCOUNT-BASED PAYMENTS
Convenient and secure new payment method
Menu
PSD2 API’S ENABLE ACCOUNT-BASED PAYMENTS TO BECOME A MAJOR PAYMENT METHOD FOR ONLINE AND IN-STORE PAYMENTS
The new PSD2 related Payment Initiation Service (PIS) enables PSP and Acquirer (owning a TPP license) to initiate a payment request, with the explicit consent of the account holder (payer) from their online payment account held at their bank to pay for goods or services. The necessary consent is the established two-factor authentication means provided by consumers’ bank.
Such an account-based payment is meant to be an alternative to the traditional payment methods such as card payment or direct debit. Advantaged to these traditional payment means are the user experience and improved security by using the mobile device and the low costs and the fast fund availability especially in combination with instant payments.
Worldline supports payment service providers (like acquiring banks, PSP and TPP) with the connection to all major European banks and the technical processing of all payment transaction related processes like routing, authentication, reconciliation and refunds.
What will be the user experience for the new account-based payments?
These payments are the new way of paying your online purchases based on credit transfer from your bank account using a mobile application. This video shows the user experience of this new payment method.
Customer Journey
The best user experience plays an important role for the optimal conversion rate of the shopping event. The payment step is optimised for the appropriate sales channel (online or instore) and is strongly supported by the usage of the mobile device.
ONLINE PAYMENTS
After filling the shopping cart the consumer has to select his/her bank and initiate the payment through the strong authentication method agreed with his/her bank.
POS PAYMENTS
The consumer either scans a QR code or uses NFC-tapping to retrieve the payment data to his/her mobile device. Then he/she can initiate the payment through the strong authentication method agreed with the consumer’s bank which has been already pre-configured in the payment app.
Functionalities
Turn your app into a mobile wallet, able to realise P2P, e-Commerce and In-store payments with NFC and QR Code, based on international, fast and cheap credit transfers within the SEPA zone.
- Initiation of online and in-store payments
- Connection to more than 2800 banks in 15 European countries
- Integration of the different secure authentication methods (SCA)
- Enhanced access and consent management
- Enable automated reconciliation processes and refund functionality
- Integration support via Initiation Pages
- Support of instant payments (if supported by the banks)
- Merchant portal including self-registration functionality
- Extended reporting functionality for fraud and anti-money laundering protection
Related functionalities
-
INSTANT PAYMENTS
Instant Payments are processed within seconds and credited from one account to another without any clearing delay. As a result, merchants will retrieve the funds much faster and do not need additional payment guarantees.
INSTALMENT PAYMENTSMerchants can definitely benefit by offering instalments to their clients, building more awareness and enhancing the shopping cart value, increasing conversion with no additional rate on top of the standard price which is spread to be paid in several parts gradually.
REQUEST-TO-PAYSupporting the sending of a payment request from the payee to the payer to provide all necessary data for the payment that should follow.
-
BUY NOW - PAY LATER
The ‘Buy now – Pay later’ concept helps merchants to enhance the average order value, increase the conversion rate and retain customers by showing engagement and loyalty.
ACCOUNT DATAAccount Information Services also makes use of the new banking APIs. Retrieving the account data can be used to improve liquidity, credit scoring and better analyse the customer data in order to gain more insights and provide a better service.
ALIAS SERVICESRetrieval of the correct up-to-date IBAN by mapping an alias like mobile number or mail address to IBAN.
VALUE FOR CUSTOMERS
- Seamless and multichannel End-to-End process
- Choice from multiple payment solutions
- Secure payment process via Strong Customer Authentication (SCA)
- Loyalty advantages
- Cross-border shopping
- Clear track of account balance
VALUE FOR MERCHANTS
- Lower processing costs
- Faster payments and access to funds
- No scheme and interchange fees
- Fast overview of unpaid transactions
- Fully digitalised payment process
- Efficient reconciliation
- Validated payment data
- Support cross-border payments
Discover our related offerings
OPEN BANKING
Broad portfolio of Open Banking services (XS2A services for banks, XS2A services for TPPs, API monetisation, etc.) and Premium use-cases (credit scoring, cash management, etc.)
ALIAS SERVICES
Retrieval of the correct up-to-date IBAN by mapping an alias like mobile number or mail address to IBAN.
REQUEST-TO-PAY
Supporting the sending of a payment request from the payee to the payer to provide all necessary data for the payment that should follow.
Report
BROCHURE
New convenient, secure, fast and cheap Account-to-Account payment method for Online and In-store payments
Learn more about the concept of the new account-based payment method together with the related user experience and the benefits for consumers and merchant.Download brochure
Our expert
Henrik Hodam PRODUCT MARKETING MANAGERHenrik Hodam has been working for Worldline since 2001 and has experience in mobile and digital, as well as in the payments, banking and telecom industry. Henrik is responsible for the Account-based Payments and SEPA Proxy Lookup service. T: +49 171 493 3435Mail Henrik
Henrik Hodam
PRODUCT MARKETING MANAGER