As the EU directive, PSD2, is set to simplify the payment ecosystem across Europe, payment service providers are starting to look into the opportunities of providing new account-to-account payments to let merchants initiate instant payments from the customers’ bank account to the merchants’ bank account.
In this way, merchants can steer clear of expensive credit card fees while simplifying the payment process and increasing security for consumers.
Both Svea and Nordic API Gateway see open banking as a significant game-changer in the e-commerce space. In early 2021, Svea is set to activate open banking payments in Finland, and soon after in other markets across the Nordics and Baltics.
Commenting on the partnership, Tomas Lundqvist, Director of Strategic Partnerships & Products at Svea Finland, says:
“The payment industry is developing at a high pace and we want to stay on top and ahead of these developments at Svea. We’ve been looking into open banking opportunities for a while and are happy to take the next steps in partnering with Nordic API Gateway to deliver, expand and explore new opportunities in the e-commerce landscape”
Rune Mai, CEO & Co-Founder at Nordic API Gateway, also comments on the partnership saying:
“We’re happy to partner with yet another strong player from Finland to deliver account-to-account payments. The new opportunities from getting regulated access to accounts is maturing at a high pace, and as an infrastructure provider we are super proud to be igniting this wave of cheaper, safer and simpler bank payments for all consumers and businesses in Europe.”
The growth in account based payments is apparent. While doing tens of thousands payments monthly a year ago, Nordic API Gateway now processes more than half a million PSD2 payments monthly for customers like OP Financial Group, Checkout Finland, Danske Bank, DNB, Lunar and more - a number the open banking firm expects to be tenfold at the end of the year.
The open banking platform is currently live in 21 European markets and expects to be fully rolled out with their payment initiation module across Europe during 2021.