How open banking payments can help merchants boost their checkout game

July 19, 2019 | Louise Basse

Expensive credit card fees. Long buying funnels. Lengthy payment credentials.

As PSD2 is set to simplify the payment ecosystem across the EU, it’s no wonder that merchants are starting to challenge traditional payment methods.

Instead, merchants are looking to customise the shopping experience to fit the consumer in a more innovative and flexible way.

But can you create such a solution in practice?

Here’s an idea of how merchants can improve their payment game and make every shopper feel like the checkout was made with them in mind.


Introducing the future of payments

Until now, the retail industry has been forcing customers to pay with a credit or debit card initiated by the debtor.

But as PSD2 introduces an array of new banking reforms, we can expect to see a lifting of additional fees for online payments.

And how is this going to happen?

Short for Payment Initiation Service Provider, PISP licensed companies like fintechs, retailers and other businesses who wants to build solutions on top of financial data, can provide account-to-account payments on behalf of the consumer if he and she has given their explicit consent.

Put simply the merchant will be able to initiate an instant payment transaction directly from the customer’s bank account to the merchant’s bank account — skipping the expensive card transaction fees.

The gateway to a smooth checkout experience

With Nordic API Gateway, you’ll be connected to all Nordic banks with one single API, using real-time transaction data from both personal and business accounts to initiate instant account-to-account payments.

Both merchants as well as the customers don’t have to sign up to and pay for any payment service providers. An online bank account is all they need.

And the best part?

Merchants can integrate the payment solution directly into their service, offering the customer a streamlined checkout service. Here’s what they’ll get in return:

Personalised and fast checkout experience.
Substantial cost savings on card transaction fees.
Ensuring fast payments and eliminating lengthy payment credentials.
No unnecessary data entries: A reliable and compliant solution that meets the demands of the future.
Are you ready to take advantage of the new payment opportunities?

Get started with Nordic API Gateway today!