The New Era: Open Banking — Future Card Payments
Blog by Thomas Markey, Head of Operations for Ciptex.
Thomas joined Ciptex in April 2019 as Head of Operations. He is responsible for improving how Ciptex operates, customer strategy and is accountable for the delivery of all operational services.
Thomas has a proven track record in the telecommunications and retail space, where he held several senior roles advising on digital transformation and customer experience.
The New Era: Open Banking — Future Card Payments
Traditionally consumers and retailers have transacted using a plastic card, in the form of a swipe, imprint or within recent years, chip and pin and contactless technology. It doesn’t seem that long ago that cash transactions were the most common payment method type.
Technology is changing and adapting to support a global change in the way we do shopping. People want now, not tomorrow. This puts significant pressure on retailers to reduce processing time, drive efficiencies, reduce cost and provide an excellent customer experience, all along preventing fraud and increasing customer confidence.
Plastic transactions have a limit, though, especially when you start processing high-value payments or operate in an industry that has a high number of chargebacks.
One Payment Cloud has been developing new and alternative ways for consumers to complete retail transactions using Open Banking.
Open Banking allows retailers to offer consumers the ability to transact using their bank account, whereas the payment is taken as a ‘bank transfer’ rather than a debit/credit card payment. The open banking integration takes the customer through an encrypted, secure page into their bank account to make the payment, with all the relevant fields (reference and amount) fully populated.
The benefits of using Open Banking allow the consumer to select their bank. The merchant payment details are then pre-loaded, and the payment is made into the merchant bank account electronically. This means several things; payments of a higher value can be done with the comfort and security within the customers own banking app.
Open Banking gateway by Open Payment Cloud allows retailers to reduce the cost of transactions, potentially take increased and larger payments, return business, and stop fraudulent chargebacks and activity. Most banks operate additional security verification when making a bank transfer payment.
