Why Open Banking
- No chargebacks. A bank transfer authorised by the payer cannot be disputed like a card payment; a refund is a decision of the merchant, not of a scheme.
- Instant settlement. Funds arrive on instant rails: Faster Payments in the UK, SEPA Instant in the EU, PIX in Brazil, NPP in Australia.
- Lower fees. A flat fee per transfer instead of a percentage with interchange, which matters most for high amounts.
- Bank-grade authentication. The payer confirms in their own banking app; no card numbers to store, no 3-D Secure to pass.
- Higher limits. Bank transfers carry the account’s limits, not the card’s, which suits deposits in trading and iGaming.
How a payment goes
- The checkout shows the payer the banks available in their country, in their language, with their own bank first when it is known.
- The payer chooses the bank; the licensed provider creates a payment initiation and redirects the payer to the bank’s app or site.
- The payer confirms the amount and the payee in the bank’s own authentication; the bank executes an instant transfer to the merchant’s or the client’s account at the provider.
- The provider reports the result; the platform maps it, writes it to the journal and sends the merchant a signed webhook, usually within seconds.
- Settlement follows the provider’s model: directly to the merchant’s account, or to the client’s collection account with the client settling its merchants.
| Market | Scheme | Rails | Recurring |
|---|---|---|---|
| United Kingdom | Open Banking (CMA9 and beyond) | Faster Payments | Variable recurring payments: sweeping live, merchants piloted |
| European Union | Payment initiation under PSD2 | SEPA Instant, local instant schemes | Per provider and bank |
| Brazil | Open Finance | PIX | Automatic PIX, per provider |
| Australia | PayTo | NPP | Yes, agreements |
| Saudi Arabia, Bahrain | Open Banking programmes | Local instant rails | Per provider |
What Tranzify adds
Open Banking providers — TrueLayer, Yapily, Volt, Tink, Token.io and others — are adapters in the catalogue. A client enables them through routing rules and cascades them with cards and local methods: a payer whose bank is down can be offered a card without leaving the page. The checkout shows the payer’s banks in their language; callbacks and reconciliation come through the same webhooks and journal as every other method; the ledger records the settlement the provider reports. Payment initiation itself is the regulated service of the provider, under its licence; the platform routes, records and reports.
Fees and settlement models
Open Banking providers price per transfer: a flat fee, sometimes with a small percentage for high amounts, and no interchange, no scheme fees and no chargeback fees. Settlement follows one of two models: the provider pays the merchant’s or the client’s account as each transfer arrives, or collects into an account at the provider and settles on a schedule. The platform records either model in the ledger: the payment when the provider confirms it, the fee by the rule the client set, and the settlement when the provider reports it, so the client’s finance team reconciles Open Banking the way it reconciles cards.
Who uses it
High-risk and cross-border merchants first: iGaming, forex and crypto on/off-ramps, where chargebacks and declines cost the most and where deposit limits matter; then marketplaces and subscription businesses that want instant settlement without card fees; then any merchant with high average amounts, from travel to education. The countries pages show where Open Banking has a real share of online payments, and the providers pages which licensed providers cover each market.