The payments landscape is changing. Cash is no longer king, and even card payments can’t fully meet consumer demands for speed, convenience, and reliability. But given the success of open banking powered payments, it seems there’s a new sheriff in town
But why is there so much buzz around this emerging payments infrastructure? We asked the question so you don’t have to.
‘The future of payments is open’ covers the benefits, drivers, and challenges of PIS, o payments initiation services. In it, financial executives across Europe note that while open banking powered payments hold great promise because of their security, speed, and low cost, there’s still work to be done in order for this new payments ecosystem to reach its full potential.
Few instant payment rails, low user awareness, and suboptimal user experiences were considered the main barriers to PIS adoption. This indicates that the industry needs to work on optimising payments infrastructure and boosting UX for open banking powered payments to fully succeed.
Luckily, there are ways to work around the issues of the existing payments infrastructure and still gain the benefits of payments initiation services. Working with a partner that can innovate around substandard APIs and operate on top of legacy systems is one of them.
After all, open banking is about meeting consumer demands for secure, fast, and consistent payment experiences. That’s why the main drivers centre around speed, reliability, and convenience.
Main drivers of PIS adoption:
- Real-time payments
- Ability to pay directly from any bank account
- Secure payment flows
Our research shows that while the industry has a ways to go before full-scale adoption, it’s clear that open banking payments are best suited for meeting the market need for seamless payment journeys.
Download the full report to find out more about how open banking is transforming the payments landscape.