Glossary
Open Banking
Open Banking is the set of rules and bank interfaces under which a customer can authorise a licensed third party to initiate a payment from their bank account or to read the account's data. In the EU it comes from PSD2, in the UK from the Open Banking standard built on it; Brazil, Australia and others have their own frameworks. For a merchant it means pay by bank: the payer confirms the payment in their banking app, the money arrives by transfer, and there is no card, no interchange and no chargeback.
Who does what
The bank holds the account and authenticates its customer. The licensed third party, a payment initiation provider, connects to the bank’s interface and starts the payment at the payer’s request. The merchant receives a transfer. A platform shows the method on the checkout and follows the result; the licence and the bank connections are the provider’s.
Where it works today
The UK has the most mature market: standard interfaces across the large banks, instant settlement over Faster Payments and variable recurring payments. In the EU the interfaces exist in every member state but their quality differs by bank; SEPA Instant makes the transfer arrive in seconds where the bank supports it. Brazil’s Open Finance works together with PIX; Australia’s framework adds PayTo for recurring payments. Elsewhere the method is early or absent.
On the platform
Tranzify lists Open Banking providers by country in the catalogue; a client connects its account at a licensed provider as a terminal, the checkout shows the payer’s bank list, and the payment’s status comes from the provider’s confirmation and webhook, with the usual gap between initiated and settled kept apart in the status model.
Updated: 2026-11-08