One of the most appealing and significant new tools born of Open Banking is Payment Initiation Services.
Payment Initiation is a powerful tool for any company that must send or accept payments online, and it is poised to streamline payment processes while still enabling brand new user interactions.
After all, this is due in part to familiarity and the fact that open banking and PIS transfers are newer technologies. PIS development, however, continues to lag behind that of open banking account information services (AIS). There were around 320 million AIS links in February, indicating that people were using apps and other websites to access their account records. This is partly since not all payment service providers (PSPs) have PIS functionality, rendering widespread use of the technology impossible for merchants and vendors.
What is Payment Initiation, and how does it work?
Consumers who use a Payment Initiation Service grant their permission for a third-party Payment Initiation Service Provider (PISP) to connect to their bank account and then execute a payment on their behalf.
Payment Initiation is an Open Banking-based online payment system.
What is the relationship between Payment Initiation Services and Banking-as-a-Service?
Open Banking is allowing for significant new developments in Banking-as-a-Service (BaaS). If BaaS offers the tools for delivering financial services, Open Banking expands the scope of such tools’ implementations.
Payment Initiation Services are best accessed by businesses via a reliable BaaS provider including OpenPayd, whose application model allows companies to operate an entire network of banking and payments services through a single interface or API integration. BaaS (or ‘Embedded Finance’) platforms are revolutionising the way financial services are delivered, and they are at the forefront of the crucial next generation of fintech.
How can Payment Initiation Services be integrated into business?
Payment Initiation Services provide a wide variety of possible uses, and there are an increasing number of PISPs with their own exclusive offerings. However, Payment Initiation is yet another method for which a company must find and negotiate with a supplier, as well as integrate and manage the necessary programs.
The platform concept comes into effect here. Businesses can conveniently access all the banking and payment systems they need through a single API or web interface by collaborating with a BaaS network. Customers can easily and effectively develop the financial infrastructure they need to develop and expand their company thanks to OpenPayd’s global network of partner providers and licensees.