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Open Banking payments is a new model of banking payments that allows third-party companies to make payments through an API.

Thanks to this model, customers can use various services and applications without the need to enter banking data, as these data can be directly integrated into the application. In addition, this model allows banks and third-party companies to interact with each other to provide more efficient and convenient payment services.

If you want to learn more about open banking for business, the Fondy service has prepared a detailed step-by-step guide and told you everything you need to know about this payment type. The information will be helpful to businesses and ordinary users who often buy goods on the Internet, especially if they order products from abroad and want to ensure their payment data are safe.

The main features of open banking payments

Open Banking payments fundamentally differ from other payment methods in that they guarantee increased security of transactions. The clients have maximum control over the situation and access to their bank data. The transactions themselves take place in an encrypted way, eliminating potential risks with the loss of funds due to the use of unreliable third parties. At the same time, it is still convenient because it does not require extra effort from the client when making payments. It also makes it impossible to enter inaccurate data, which causes technical errors. Want to see how it works in practice? You can do it with Fondy: register and start managing your finances conveniently today.

Advantages of open banking for business

Since open banking allows efficient management of accounts and payments, business owners and online companies can effectively control their financial flows. To fulfill tax regulations and comply with other requirements, accounting remains relevant. However, business owners can get up-to-date information about their accounts anytime, even without asking the accounting department. This is the main reason why open banking is becoming an integral part of modern business. But it’s not just about that. Open banking has other advantages for companies:

The opportunity to save money when making international transfers, as the tariffs for using open banking are much lower than when using traditional international transaction methods.
Open banking makes it easy to manage several accounts and different currencies. This significantly facilitates online business routine processes and leads to decreased operating costs.
You can use just one app to find the best deals in the financial services market.
Open banking integration on the site allows customers to quickly make payments from any bank account anywhere in the world. Payment is instant, so online stores get a higher conversion rate if they use open banking.

It also leads to increased customer loyalty. Moreover, in the case of refusal of the purchase or return of the product, the refund also occurs instantly, which is why it is convenient for customers and beneficial for business. This way, keeping all money flows under control is much easier without dealing with unnecessary paperwork.