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GoCardless Nording, which aims to keep people and businesses away from credit and debit cards, is entering a data sharing technology deal.
London-based GoCardless is buying an open banking information company based in Nordigen, Riva, Latvia. While GoCardless has been building open banking products for some time, the acquisition is the first step in developing a technology that supports the sharing of information between banks and third parties.
“We didn’t expect to be in an open banking relationship, but there is something more to be done with that layer of technology,” said Hiroki Takuki, co-founder and CEO of GoCardless. “Open banking is similar to the Uber-type experience. You can use the app for many other purposes. There is a huge amount of data in your banking application.”
The terms of the deal, which is expected to close this summer, have not been announced. The purchase comes as an open banking service, which is generally described as a mature, more competitive relationship that allows consumers or businesses to access accounts from multiple providers.
That maturity will lead to new open bank deployments to address specific challenges for consumers and businesses, such as risk management. Safety and compliance Or determination Best pay train Transaction based on the payer and receiver’s financial needs.
“Open banking is still a long way from mass adoption.
More businesses and consumers are using open banking-enabled financial services to manage their budgets or access third-party financial applications, Morrison said. And while most of the previous open banking operations were focused on consumers, the technology is increasingly being applied to businesses, covering B2B and B2C transactions, Morrison said.
GoCardless integrates Nordig’s open banking connection with an account-to-account network, which builds on GoCardless’ existing open banking operations. Norden, for example, allows GoCardless to add more data and credit reviews.
Includes new types of payments, such as variable recurring payments. The VAP payment provider makes a series of repayment payments in the Pre-Agreement range on behalf of the customer, supported by the customer’s bank account and connected to the service providers through the application programming interface. VAP is considered for use by small businesses that are subject to a wide range of services or products that are regularly paid for by many suppliers. It is also a way for householders to better control, monitor and pay bills, mortgages and other similar expenses.
“There are a lot of complexities about being able to collect payments,” Takewchi said. “Open bank straightens those rails in a straightforward way, but it is not widely used in this way.”
GoCardless presents itself as an alternative to traditional card racing, which is criticized by merchants who support A2A payments. Card payments.
GoCardless is also competing with Fintech. A2A trendSuch as Click2Pay, Curve and Affirm. Open bank rails make A2A a more viable option than ever because it allows banks to access a variety of services from third parties and supports fast payments in real time, Morrison said.
“Open bank payments are more than just payments,” Morrison said. “The market is moving from point-to-point solutions that enable account dashboard to something broader.”
GoCardless has supported real-time payments over the past 18 months. Introduces a service that uses account information (AIS) to verify identity and combat transaction fraud. AIS Refers to the use of open banking connections to enable their customers to have an overview of all their financial accounts and transactions in one secure location.
Although GoCardless’s main market is the UK and the EU. It is expanding into the United States. And other markets such as New Zealand; And it is adding additional financial services such as bank payments, which support one-time payments between bank accounts.
Open banking has been a concept for more than a decade, although it has been accelerated by the PSD2 policy, but it does apply to Europe. He influenced other nations. They also have card brands. He received an open banking serviceCreate more competition for the GoCardless model.
“When we started the company for the first time [in 2011], An open bank was being created, ”said Takeuchi. We were waiting for the right time for the technology to be ready. “
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