We’re very excited to be able to say that as of earlier this week, our Open Banking Payments product is live and available to all comers.
At its most basic, the new product uses Open Banking APIs to allow people to initiate payments directly from their bank account. It provides a faster and cheaper alternative to existing payment channels without the necessity to share card details with third parties.
Alongside the launch, we’ve been working with Blockchain.com to announce a pan-European trial which will make the new payment channel available for Blockchain’s European customers. Initially to be deployed as part of Blockchain.com’s onboarding process for new UK customers, Bud’s Payments product will allow Blockchain.com’s customers to fund crypto wallets directly from their bank accounts without sharing card details. As the partnership progresses, we’re looking at expansion both in terms of its use within the Blockchain app and its roll out to european customers.
We’ve consistently said that payments will be an important part of the puzzle when it comes to realising the value that Open Banking can create - particularly in the context of an end-to-end platform. People tend to look at Open Banking and think about aggregation, but in many ways, aggregation is the least disruptive part of it.
The real value that open finance provides comes when you can understand someone’s financial data and help them to act on the insight. Most of the time that action will result in a payment being made.
Open banking payments have some amazing benefits for customers - they’re faster, (with most UK transactions clearing within minutes,) they’re cheaper for clients and, by removing the need to enter card details we’ve removed the need for users to choose between convenience and security because you never have to enter your card details.
For a full download on the product’s capabilities you can grab the fact sheet here but, by means of a top line summary:
1. What is PISP / How does it work?
Open Banking payments use banks’ APIs to initiate a transfer from one account to another. The merchant provides the payment particulars (amount and the receiving bank account etc..), and the customer then initiates the payment and authorises it via their banking app or website. The banks then handle the transfer through the most appropriate payment method. In the UK the vast majority of these use the faster payments network and therefore clear in a number of minutes.
2. What are Bud’s capabilities?
The product enables merchants to build a payments flow within their apps and services. If you have your own PISP licence you can implement this however you like. If you don’t have a PISP licence, you can use Bud’s licence and our customisable template for the flow. The product currently enables single payments only, though we’ll be adding functionality for recurring / scheduled payments (an alternative to direct debits) very soon. Payments made over the channel are logged in your own searchable dashboard for full visibility.
3. How hard is it to implement?
That depends on your use-case but for the majority of implementations it’s incredibly easy and fast. Simple use cases should take no more than a day. Obviously as the complexity of what you want to do with it increases, so will your implementation time. The best way to assess your project is to check out the API docs and get testing by creating an account on our developer console.
4. How do we get started?
Get in touch with our sales team if you'd like to talk through the platform in more detail or fill out the form below and we'll ping over a factsheet with more information.
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Bud® is authorised and regulated by the Financial Conduct Authority under registration number 765768 + 793327.