How to save money for a business with a large number of small-sized transactions

There are many different types of businesses whose customers make frequent small-sum purchases, from online stores to high-risk gambling. Regardless of the type of business, payment problems remain the same, such as chargebacks or high fees. We will explain how to avoid these issues thanks to a modern alternative to card acquiring.

First, let's address the problems. Here are the main pain points for companies whose business relies on numerous small-ticket payments:

• Chargebacks
• High fees
• Insufficient payment success rates
• Speed of funds settlement
• Deposits or rolling reserves

All these problems are effectively solved by the Instant Open Banking Payment Solution.

What is this?

Open Banking is a modern technology that allows banks and other financial systems to interact with third-party applications. The concept of Open Banking enables the integration of financial services with other services and simplifies customer access to them. This 'connection' between banking and other services is facilitated through APIs. So with Open Banking you can accept payments from European banks using SEPA instead of card acquiring.?

Literally Instant Payments

Once a customer pays for your goods or services, the funds are received instantly, allowing you to use them immediately, without waiting for payment processing. You literally receive money in seconds.

Why are there no chargebacks?

This is because the client is making a wire transfer, and wire transfers do not have any chargebacks as a class. However, it is worth bearing in mind that the client may request a refund, so you should ensure that you provide your services or goods in good faith so that the client has no incentive to do so.

The conversion rate is up to 97%. Why?

Because it’s convenient for customers! You don’t have to enter your card details manually – just press the ‘instant payment’ button, choose your European bank from the list, log in and pay. The process takes the same amount of time as paying by card, but is much easier – you just have to make a few clicks. It’s a UX solution that focuses on being as user-friendly as possible.

And commission is lower: from 2,4% to 4%?

These are Bilderlings figures, but they correspond to market prices.

And no deposit or rollover reserve of 10% for six months!

It definitely saves your energy (and nerves, and money).

This is not just new technology, but essentially a new business model. We are already accustomed to digital banking, having a bank in our phones, and generating financial reports with a single click. Open Banking provides businesses with development opportunities due to its convenience, accessibility, and time-saving aspects. It reduces barriers, shortens timelines, and creates the foundation for possibilities. Thanks to Open Banking APIs, services can perform functions they could never do before.

How is Open Banking regulated?

Open banking is regulated and supported by the Second Payment Services Directive of the European Union (PSD2), which came into effect in 2018. Regulators recognized that the proliferation of open APIs and the development of open banking create a more fair and competitive market and more transparent rules for service consumers.

The directive obligates banks to provide API access to customer accounts for any organization that has obtained the customer's consent. Additionally, regulators oversee customer security, with stricter customer authentication rules currently in place.