Mastercard and Worldpay are embarking on a strong push to promote Mastercard's Pay by Bank system, which will likely face a deluge of competition under the updated Payment Services Directive (PSD2), which took effect this year.
The Canadian government is consulting with the country’s banking industry on opening up Canada’s payments infrastructure to nonbank payment service providers and fintechs, in a far-reaching move to spur innovation and competition.
A lack of standardization increases costs and complexity at each bank, opens the door to insecure solutions and hinders adoption by software developers that only have bandwidth to write to one or two open APIs, according to Steve Kirsch, CEO and founder of Token.
NovoPayment, a payment provider focused on Latin America, is working with Visa to help local banks work with Latin American businesses to migrate from their high levels of cash usage to digital payments.
Above all, open banking helps financial institutions improve the user experience, increasing customer satisfaction and addressing consumer needs, writes Aurimas Adomavicius, president and co-founder of Devbridge Group.