August 14, 2020 | Louise Basse
Big changes are taking place in the payment landscape as new legislation and technology challenge the way we integrate payments into products and services. With the rise of contactless payments, there’s no doubt that payment initiation has become a global trend that’s here to stay.
But how does it actually work? And what businesses are able to benefit from the opportunities that payment initiation brings?
Take a look below to get a better understanding of what payment initiation is and how you can easily integrate it into your business.
Put simply, payment initiation is a payment method that enables you to integrate account-to-account payments directly into your service or product. By doing that, businesses are able to unlock a range of time-efficient and cost-effective benefits for businesses and consumers.
Payment initiation allows businesses to place all payment functionality from the online bank in the service or product they’re offering. In this way, consumers can skip the extra steps of changing context to initiate a payment.
Anyone with a bank account can pay and accept payments. Therefore, it’s safe to say that the potential use cases with payment initiation are practically endless – whether you’re shopping for new clothes online or paying invoices in an accounting system.
Here's a list of some of our customers that are using our payment initiation platform to create seamless payment options for their customers:
But what are the actual advantages of using payment initiation and account-to-account payments? And how does it differ from traditional card payments?
According to Michael Juul Andersen, Chief Business Development Officer at Aiia, it’s all about convenience:
"Account-to-account payments are fast, inexpensive and virtually hands free. You can view your balance before confirming a payment while enjoying the same level of security a bank offers. It's no wonder why more and more credit card companies are tapping into the benefits of account-to-account payments."
Besides the obvious advantages of a clean, quick and cheap solution, account-to-account payments provide a reduction in fraud thanks to strong customer authentication (SCA) applied to each transaction, deliver instant refunds and dispense faster settlements.
Because of the frictionless payment flow, account-to-account payments are designed for high conversion. To initiate a payment with our platform, you have to follow three simple steps:
As we’ve previously emphasised, the potential use cases with payment initiation and account-to-account payments are practically endless. To mentioned a few, we’ve created a small list of businesses and industries that can benefit from using payment initiation to send and/or receive payments: