Open Banking Payment Gateways: Helping consumers & merchants

What is an Open Banking Payment Gateway?

A new payment mechanism for your consumers is an Open Banking Payment Gateway. Customers pay you via quick bank transfer, which moves funds from their bank account to yours. It is quick and secure, and no cards or data are required.

Open Banking is a set of financial services solutions, technologies, and standards that allow customers to communicate account information in a safe and secure manner, such as through UK applications and websites.

When merchants use Vendreo's Open Banking Payment Gateway service, they obtain all of the capabilities expected of a modern payment method. Refunds, recurring payments, instalment options, and full reconciliations are currently available in our system.

You can, for example, provide a regulated firm with secure access to your current account information held by your account provider via an app or website. Only you can decide what information to share and for how long, and no one can access it unless you permit them.

To use an Open Banking Payment Gateway service, you must have online or mobile banking for your personal or business current account.

Services that allow you to share your account information with organisations other than your bank have been available for some time, but they were supplied using a technique known as screen scraping. Screen scraping is extracting information from a computer screen, similar to taking a snapshot of your data.

An Open Banking Payment Gateway is more secure since you do not have to divulge your password or login details to anyone other than your bank or building society.

Why should I divulge my personal information?

Sharing your information allows businesses to offer you various services via an Open Banking Payment Gateway. You can, however, manage how your information is used and who has access to it.

These services may be provided by companies you are familiar with, such as high-street banks, or by outsiders. Among the services that may be provided are:

Account dashboard and aggregation allow you to view accounts from multiple banks and building societies in a mobile app or internet interface.
Spending analysis categorises transactions and payments across multiple accounts to identify how much you spend on specific things or with specific businesses.
When you browse for services on a comparison site, for example, if you're looking for a new energy supplier, your spending habits will be automatically analysed, and you'll be able to receive the best deals without having to manually enter all of your information.
Keep track of your financial goals; for example, if you're saving for something, you can establish a goal and track your progress.
Spending limits entail tracking how much you spend over time after deducting recurring expenditures such as rent and bills.
How can I tell whether an Open Banking service is genuine?

Check that the app or website you wish to use has been approved by the FCA and is listed on the Open Banking website.

When you sign up for account information services with a company, the provider should provide you with sufficient information so that you understand the nature of the service and how it will use your data, including if it will share your data with anyone else.

Before using one of these services, exercise caution and confirm that any organisations to which you provide your information are who they claim to be. You should make certain that you understand the service and are happy with the person who will offer it to you.

You should not give permission if you are unsure why you are doing so or who will receive the information. If you do not allow permission, you will be unable to use the services.

What will data Open Banking firms be able to access?

Companies should only request access to the information needed to perform the service.

Access can be granted to current accounts, flexible savings accounts, e-money accounts, and credit cards.

You may exchange the following categories of data:

Regular payment data, such as who you're paying, standing orders, and direct debits, as well as activities such as incoming and outgoing payments from your bank or building society account, as well as fees, overdraft payments, and rewards

You can also authorise them to make one-time or recurring payments from your bank account.

How do I go about sharing my account information?
To access account information services, complete the following steps:
Typically, you will need to download an app or log in to the website.
You will be asked to enter the information from numerous bank accounts so that the firm can gather all of the data.
Businesses that want access to your data must give you sufficient information so that you understand how and why your data will be used.
If you give them access to your bank account information, you will either:
You will be directed to your banking app or online portal to log in and confirm your willingness to share this information.
Requested that you transmit your bank details securely via their website.

Your bank will then provide the corporation access to your data.

What is the functionality of an Open Banking Payment Gateway for online payments and shopping?

Customers that use an Open Banking Payment Gateway initiate a payment to a merchant or business through their mobile banking App or online banking web site, just as they would with a bank transfer. Funds are immediately transferred to the merchant using real-time banking rails.

Certain online businesses, such as Vendreo, may allow you to pay without using a credit or debit card if you use this service. When you get to the checkout, you'll be taken to your bank's website to log in and give the business permission to request payment from your bank.

Additional security measures, such as two-factor authentication (2FA), may be necessary to ensure that you are conducting the transaction.

You may, for example, receive a code on your mobile phone that you must enter to complete your transaction. You may also be asked to confirm your phone by fingerprint or face recognition.

How to Give Permission in a Secure Way

There are a few precautions you should take when using online banking services to safeguard your safety.

Check sure the Open Banking Payment Gateway provider is listed on the FCA website and the Open Banking registration.
Examine your statements carefully, and if you see any unusual activity or payments from your account, contact your bank or account provider immediately.
Check that you understand how to revoke the authorization. This information should be accessible via the company's website or by calling.

It is vital to use internet safety precautions.

Benefits of an Open Banking Payment Gateway

Security

Open Banking Payment Gateway solutions make use of the consumer's own Online Banking App and its inherent biometric security, making it one of the safest and most secure payment methods available. Your payment information is secure, and fraud has been eliminated.

Ease-of-use

Vendreo Pay is easy to use for both consumers and merchants. Friction is reduced at the checkout, resulting in higher conversion rates and fewer abandoned carts. Vendreo Pay improves a shopper's user experience. Vendreo's API enables developers to seamlessly integrate solutions into existing websites and online apps.

Payments made more quickly

Funds are sent quickly from the consumer's bank to the merchant's bank using an open banking payment channel. There is no need to wait for third-party payment providers to process.