PSD2 API’S ENABLE ACCOUNT-BASED PAYMENTS TO BECOME A MAJOR PAYMENT METHOD FOR ONLINE AND IN-STORE PAYMENTS
The new PSD2 related Payment Initiation Service (PIS) enables PSP and Acquirer (owning a TPP license) to initiate a payment request, with the explicit consent of the account holder (payer) from their online payment account held at their bank to pay for goods or services. The necessary consent is the established two-factor authentication means provided by consumers’ bank.
Such an account-based payment is meant to be an alternative to the traditional payment methods such as card payment or direct debit. Advantaged to these traditional payment means are the user experience and improved security by using the mobile device and the low costs and the fast fund availability especially in combination with instant payments.
equensWorldline supports payment service providers (like acquiring banks, PSP and TPP) with the connection to all major European banks and the technical processing of all payment transaction related processes like routing, authentication, reconciliation and refunds.
What will be the user experience for the new account-based payments?
These payments are the new way of paying your online purchases based on credit transfer from your bank account using a mobile application. This video shows the user experience of this new payment method.
The best user experience plays an important role for the optimal conversion rate of the shopping event. The payment step is optimised for the appropriate sales channel (online or instore) and is strongly supported by the usage of the mobile device.
After filling the shopping cart the consumer has to select his/her bank and initiate the payment through the strong authentication method agreed with his/her bank.
The consumer either scans a QR code or uses NFC-tapping to retrieve the payment data to his/her mobile device. Then he/she can initiate the payment through the strong authentication method agreed with the consumer’s bank which has been already pre-configured in the payment app.
Turn your app into a mobile wallet, able to realise P2P, e-Commerce and In-store payments with NFC and QR Code, based on international, fast and cheap credit transfers within the SEPA zone.
Initiation of online and in-store payments
Connection to more than 2800 banks in 15 European countries
Integration of the different secure authentication methods (SCA)
Enhanced access and consent management
Enable automated reconciliation processes and refund functionality
Integration support via Initiation Pages
Support of instant payments (if supported by the banks)
Merchant portal including self-registration functionality
Extended reporting functionality for fraud and anti-money laundering protection
Instant Payments are processed within seconds and credited from one account to another without any clearing delay. As a result, merchants will retrieve the funds much faster and do not need additional payment guarantees.
Merchants can definitely benefit by offering instalments to their clients, building more awareness and enhancing the shopping cart value, increasing conversion with no additional rate on top of the standard price which is spread to be paid in several parts gradually.
Supporting the sending of a payment request from the payee to the payer to provide all necessary data for the payment that should follow.
BUY NOW - PAY LATER
The ‘Buy now – Pay later’ concept helps merchants to enhance the average order value, increase the conversion rate and retain customers by showing engagement and loyalty.
Account Information Services also makes use of the new banking APIs. Retrieving the account data can be used to improve liquidity, credit scoring and better analyse the customer data in order to gain more insights and provide a better service.
Retrieval of the correct up-to-date IBAN by mapping an alias like mobile number or mail address to IBAN.
VALUE FOR CUSTOMERS
Seamless and multichannel End-to-End process
Choice from multiple payment solutions
Secure payment process via Strong Customer Authentication (SCA)
Henrik Hodam has been working for equensWorldline since 2001 and has experience in mobile and digital, as well as in the payments, banking and telecom industry. Henrik is responsible for the Account-based Payments and SEPA Proxy Lookup service.
T: +49 171 493 3435