The death of cash and cards is something that has been talked about in the payments industry for some time. Cards were first introduced during the age of the Beatles and Elvis Presley, since then technology has come a long way, especially the way we pay for things. Account-to-account payments through an open banking ecosystem offers an alternative future that benefits both merchants and consumers through lower processing costs and a better consumer journey. According to Finextra, the pandemic has driven a clear shift towards A2A payments and contactless transactions in the UK.
We’re seeing many businesses explore open banking payments. Although Amazon has now retracted their intention to stop accepting Visa credit cards in the UK due to their high margins through high processing fees, it caused quite the stir in the consumer payments market and highlighted a big issue that many merchants are facing. The ripples it has created are welcome, especially as open banking providers that faciliate open banking payments, like Neonomics, are in the right kind of boats to navigate the changing waters.
The key difference as to why now is much better than before is down to a frictionless customer experience. It has gotten significantly better, and the conversion numbers back it up. At Neonomics, we have built a robust platform that can manage high volumes of traffic, at significantly lower operating costs, the benefits both customers and merchants. By providing a seamless payments infrastructure, we’re seeking to minimize transactional costs.” – Ado Fazlic, Chief Commercial Officer at Neonomics.
Neonomics’ open banking offering goes beyond e-commerce payments. Neonomics has vast experience working with small and large Fintechs; lending to crypto, invoicing to personal finance management, the use cases for open banking are limitless. Neonomics has had a successful partnership with Firi, one of the Nordic’s largest cryptocurrency platforms, and will be expanding the partnership to Denmark.
What does this mean for your business?
There are now much better ways to pay and get paid. By jumping on this much-needed market development, businesses now have a great opportunity to significantly lower their costs, receive faster settlements and develop better customer journey.