Highlighting the Bank Payment Process: Examining Launch and Long-Term Influence
In a recent episode of the 'In Focus' webinar series, a discussion took place that focused on the opportunities for various verticals to adopt the Bank Payment method, an open banking payment offering from Global Payments. The discussion was held in several countries, including Canada, the United Kingdom, the United States, Afghanistan, the Åland Islands, Albania, and many others, and was in partnership with Token.io.
Cormac Bane, the product manager at Global Payments, and Matt Jackson, the vice president of partner management at Token.io, led the discussion. Ellie Duncan, head of content at Open Banking Expo, also joined the conversation.
Merchants worldwide are adopting the Bank Payment offering by integrating API-driven solutions that connect directly to customer bank accounts. This allows for instant payment rails to improve transaction speed, cost efficiency, and security.
In the United States, merchants like Walmart are partnering with technology firms, such as Fiserv, to implement instant Pay-by-Bank solutions for both online and in-person purchases. Customers link their bank accounts to their merchant accounts, which permits instant fund transfers, reduces interchange fees, and expedites the availability of funds for merchants.
Adoption of open banking payments is currently growing but remains relatively low in many places. However, younger and higher-income consumers show a greater willingness to use open banking payments, indicating future growth potential.
The value for merchants includes reduced fraud exposure, lower transaction costs, and more immediate fund availability due to settlement over instant payment rails rather than slower methods such as ACH. Globally, merchants benefit from open banking payment methods by simplifying cross-border transactions, avoiding high card network fees, and utilizing digitized, secure payment processes. This supports a more seamless and efficient payments ecosystem across diverse countries, even those with varying levels of banking infrastructure.
Some merchants may also enhance security in payments using additional layers like “Tap to Confirm,” particularly in e-commerce contexts, which helps verify the consumer and reduce fraud risks during the approval of transactions.
Overall, the adoption of Global Payments' Bank Payment offering is expanding globally due to its benefits. Merchants are taking advantage of instant payment rails to improve transaction speed, cost efficiency, and security, making open banking payments an attractive option for businesses worldwide.
- Ellie Duncan, head of content at Open Banking Expo, suggested that the adoption of open banking payments, such as Global Payments' Bank Payment offering, is poised for growth, particularly among younger and higher-income consumers.
- The global business landscape could benefit significantly from the implementation of instant Pay-by-Bank solutions, as they allow for a simplified and secure cross-border transaction process.
- Technology firms like Fiserv are partnering with major merchants, such as Walmart in the United States, to provide open banking payment options that reduce interchange fees and expedite fund availability for merchants.
- Token.io, in their partnership with Global Payments, facilitated a discussion on the potential of the Bank Payment method for various industries, highlighting the importance of API-driven solutions in incorporating open banking payments into businesses world wide.
