What is an Open Banking payment gateway?

11 Apr 2023

An Open Banking payment gateway is a payment solution that leverages open banking APIs to facilitate online transactions between customers and merchants. Open banking is a financial technology concept that involves sharing customer financial data with third-party providers through APIs. Payment gateways, on the other hand, are software applications that enable merchants to process payments made by their customers.

By combining the two, Open Banking payment gateways offer a secure, streamlined, and cost-effective way for merchants to accept online payments. With Open Banking payment gateways, customers can initiate payments directly from their bank accounts, without the need for credit or debit cards. This results in reduced transaction fees, faster settlement times, and increased security and transparency for both customers and merchants.