Open Banking and Account-to-Account (A2A) payments are revolutionizing online transactions. These technologies offer a direct, secure, and cost-effective way for customers to pay for goods and services online. They will soon be coming to the African market.
What are the benefits for eCommerce merchants?
- Lower costs: A2A payments typically have lower transaction fees than card networks.
- Faster settlements: Merchants often receive funds almost instantly, improving cash flow.
- Enhanced security: Direct bank authentication reduces fraud risk.
- Improved conversion rates: A streamlined payment process reduces abandoned transactions.
- Wider customer reach: A2A payments can accommodate customers who don’t have credit cards.
How does Open Banking contribute?
- Direct bank payments: Open banking enables customers to pay directly from their bank accounts, cutting out intermediaries.
- Enhanced security: Strong Customer Authentication (SCA) and real-time account verification reduce fraud risks.
- Data control: Consumers retain control over their data, granting explicit consent for data sharing and being able to revoke access at any time.
By embracing Open Banking and A2A payments, eCommerce companies can create a more efficient, secure, and inclusive payment ecosystem. Are you ready to leverage these technologies for growth in the African market?
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