Interbank payment network Swift is pushing an API standard which will enable banks to provide instant loan approvals for customers at the point-of-sale.
'Pay Later’ is an instant online payment facility which offers customers the ability to use traditional bank loan financing to pay for goods purchased online.
The banking co-operative says the Transactional Finance Application Programming Interface provides merchants with a single standard connection to member banks around the world, avoiding the need for multiple costly implementations.
Swift members believe the introduction of the interface will help the banking industry transition into the world of digital platforms.
Anne Carøe Hald, global head of payments products at Danske Bank says: “Pay Later is an opportunity for banks to serve their customers better; to offer appropriate finance where and when customers need it. The ability to provide services in this way - seamlessly integrated in customers’ on-line lives - will be key for banks to thrive in the digital economy.”
Swift has published Version 1.0 of the Pay Later API - which re-uses business definitions from the established ISO 20022 messaging standard - with the collaboration of a working group that includes banks, merchants and technology providers, paving the way for live pilot implementations.