B R I T E
PA Y M E N T S
pace with the instant economy,
Lena Hackelöer, they need fast, affordable, effortless, Founder & CEO of instant and secure payment processes. The is, what payment system payments provider Brite question is built for the digital age? I believe Payments, believes that open banking is the answer. open banking is on OPEN BANKING PAYMENTS 2.0? the cusp of a new era The industry is now looking closely While the world of payments has changed considerably over the past decade, there are areas that still require significant improvement. In fact, some of the underlying rails and infrastructure supporting different payment systems are beginning to look decidedly outdated. To be fair, they weren’t built with our digital age in mind, but the result is operational inefficiencies, unnecessary operational costs, the proliferation of fraud, and delayed transaction settlements. While it is merchants and businesses that are acutely aware of these issues, consumers also suffer from the knock-on effects. Their expectations have changed. For payments to keep
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at the most recent iteration of the Payment Services Directive (PSD3), which underpins open banking in Europe – the first revision since PSD2 brought open banking into existence in 2018. And a report by the Financial Conduct Authority’s Joint Regulatory Oversight Committee has now also indicated the direction of travel for open banking in the UK. While PSD3 and the accompanying Payment Services Regulation (PSR) have been called evolution rather than revolution, I believe that we stand on the cusp of a new era of open banking. We’ve seen open banking payments emerge as one of the most compelling and practical use cases for this framework, and forthcoming regulatory changes should ensure a dynamic competitive landscape that sets the
scene for genuine innovation. Now, we will see open banking payments come to the fore and go further in addressing the long-standing infrastructure challenges that affect modern transactions. Regulatory evolution is also accompanied by broader macro trends that put open banking payments in the spotlight. Businesses are dealing with inflation, rising expenses, and tight margins – any inefficiencies in payment processes, or unnecessarily high transaction fees, can significantly impact the bottom line. As a result,
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We’ve seen open banking payments emerge as one of the most compelling and practical use cases for the open banking framework modern account-to-account (A2A) payments that are processed through open banking are attracting interest from a wide range of businesses. These allow end consumers to pay
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