Open Banking Solutions: A Game-Changer in Payment Methods | Ecommpay | Money20/20 Europe 2024

At Money20/20 Europe in Amsterdam, Moshe Winegarten highlighted the transformative advantages of Ecommpay’s open banking solutions over traditional card payments. These solutions offer faster settlements, enhanced customer experiences, and reduced chargeback risks, making them attractive for merchants and consumers alike.

Speed of Settlement

Winegarten emphasized that Ecommpay’s open banking provides rapid settlement speeds. Merchants can receive funds instantly or on the same day, depending on the country. This is a significant improvement over traditional card payments, which can take several days, especially during long weekends.

Enhanced Customer Experience

Open banking payments enhance the customer experience. Traditional card payments require entering card details at checkout, whereas open banking allows for a seamless payment process with just a few clicks. This simplification improves the shopping experience and encourages customers to complete their transactions.

Elimination of Chargeback Risks

Open banking eliminates chargeback risks, removing the complications and financial losses associated with chargebacks. This provides a more secure payment process for merchants.

Adapting to Consumer Payment Preferences

Ecommpay’s open banking solution caters to diverse consumer behaviors across Europe. Some markets are card-heavy, while others are not. By accommodating various payment preferences, Ecommpay enables customers without cards to shop online, significantly expanding the potential customer base for merchants.

Comprehensive Suite of Products

Ecommpay offers a robust suite of open banking products: Account Solutions, Advanced Solutions, and Open Banking Select. The account-to-account service allows merchants to collect funds directly in real-time, leveraging the speed of local bank networks.

The advanced solution acts as an intermediary, aggregating funds for merchants, supporting payouts and refunds, and offering immediate confirmation of funds at checkout. It also provides third-party funding verification, enhancing transaction reliability.

The Open Banking Select product serves as an integration layer to multiple open banking providers, offering flexibility for merchants to work with their preferred providers without additional integration efforts. This adaptability allows businesses to customize solutions to their specific needs.

Boosting Conversion Rates

Businesses implementing open banking as a payment method have seen a 10 to 20 percent uplift in conversion rates. This improvement is crucial, as two-thirds of customers abandon checkouts if their preferred payment method is unavailable. Open banking’s growing demand in various markets helps retain these customers.

Adoption Across Industries

Early adopters of open banking include sectors with significant money movement, such as remittances, neobanks, prepaid card loading, and stockbroking. The retail sector has recently begun to embrace open banking, particularly due to the advanced solution’s ability to handle refunds.

Challenges and Optimization

Adopting open banking presents challenges, especially regarding user experience (UX) and setup. Ecommpay has invested in optimizing the payment flow to minimize checkout dropouts. From simple desktop web interfaces to complex mobile SDKs, they have streamlined the user journey.

Reconciling instant funds can be challenging. Ecommpay’s advanced solution aggregates funds and provides consolidated reporting statements, simplifying reconciliation for merchants.

Global Expansion and Future Prospects

Ecommpay plans to expand its open banking solutions globally, targeting the UAE, Middle East, North America, and Australia. Locally, they aim to enhance their advanced solution by adding virtual IBANs to improve success rates for open banking payments.

Ecommpay is dedicated to helping clients expand globally, supporting their needs wherever they are. By providing local accounts in various markets, Ecommpay enables businesses to operate seamlessly across borders, meeting the growing demand for open banking solutions worldwide.