Technology for the sake of technology doesn’t interest me.
In fact, I would say I’m only interested in technology if it solves a customer problem.
In the late 2000s, I noticed that iDEAL, a brand new payment method in The Netherlands, had emerged from nowhere to process 70% of the country’s online transactions within a few years of launching.
It gave consumers an easy way to pay with their bank, and merchants an alternative to expensive card rails. Well, iDEAL is the first Open Banking Payments / Pay by Bank solution that achieved monster success.
I knew then it was time to bring PayWithMyBank back to the U.S. – where I invented the model in 2000.
But what problems does this Pay by Bank technology solve for consumers and merchants?
✅ Open Banking Payments are a new, “form free” user experience paradigm. Simple. No registration. No card, bank routing/account or billing form to complete. To pay, the consumer signs in to their online banking, from memory, without leaving the merchant’s site/app, chooses a checking or savings account, and confirms.
✅ Open Banking Payments give merchants another payment acceptance option that delivers on “the 3 Cs”: Coverage (all banked consumers), Conversion (high approvals), Cost (lower than debit, with no chargebacks). Adding it at checkout enables the merchant to increase revenue and decrease payment costs.
✅ Open Banking Payments give consumers and merchants peace of mind when it comes to security and fraud. The consumer must go through their bank’s strong authentication, i.e. username + password + one-time code sent to mobile today, which is progressively being replaced by the even simpler Face ID – much more robust than the 3 digits on the back of a card!
These are only three problems that Open Banking Payments can solve for consumers and merchants.
What are some other benefits? Let me know in the comments 👇