A new service from FIS, Open Banking Hub, will allow customers to pay for items directly from their bank account, which has the benefit of never making them enter information through a third-party site, a press release says.
The service will also allow customers to check their bank accounts during the process.
Asif Ramji, chief growth officer at FIS, said that the simplicity was a draw for customers.
“The beauty of our Open Banking Hub is that it allows merchants to offer real-time pay by bank account options to consumers and the ability for consumers to see their bank account balance during the sale – all without needing to share account details,” he said, according to the press release. “Merchants that invest in digital payment options that provide consumers with greater control over their finances will be the ones to capture the attention of today’s digital-native shoppers.”
The Open Banking Hub provides a lone API to allow consumers to be automatically redirected to their bank upon finalizing a purchase, and to see their bank account balance and info while checking out, the press release says.
While the open banking initiative is providing more access to customers’ data and more freedom in spending, it can also provide challenges by way of the numerous standards and practices merchants have to adhere to in terms of accessing new payments options and using APIs.
Imran Gulamhuseinwala, implementation trustee of the Open Banking program funded by the U.K. Competition and Markets Authority, said open banking “is making banking services more convenient, better tailored and fundamentally smarter for consumers,” the press release said.
Customers have become accustomed to better kinds of technology beyond the minimum functions of banks, and many have expressed a desire for functions to report cards lost or stolen, allow payment plans for large credit purchases or dispute potentially incorrect or fraudulent charges.