Merchants who enable this digital bank account payment method in their online stores can allow their consumers to pay for purchases directly from their bank account, while also allowing consumers to view their bank account balance in real time during the checkout process. Because the new solution routes users directly to their personal bank to authorize payment, they never have to enter card or account information into a third-party site.
The open banking movement is reshaping the global banking and payments industry, giving consumers greater access and control over their financial data through the use of open application programming interfaces (APIs). However, the move toward open banking is also presenting challenges for merchants in complying with a range of standards for accessing API-based networks and offering new payment options to shoppers.
Worldpay’s Open Banking Hub is aimed at simplifying the process for merchants by providing a single API integration to banking providers. When consumers make a purchase via a mobile device through the Open Banking Hub, they are automatically redirected to their banking provider’s app to complete their order. During the online checkout process, the solution allows the shopper to see their bank balance, choose which account they’d like to pay with, and then make the payment in real-time.
For shoppers who have requested a refund, the solution also allows merchants to credit those bank accounts in real-time, providing a better experience and greater choice to their shoppers.
In a report from Ovum, alternative instant payments, including those like the Worldpay Open Banking Hub, could overtake card payments online in 2024. The Open Banking Hub is available to consumers and covers all major banks in the UK, with other markets to follow later this year.