New Open Banking Vendor Service Launched

by Paul Redmond9 June, 2022

Clear Junction has recently launched a new open banking vendor service that is based on the use of e-wallets for merchants. The service complements the PIS offering of open banking vendors and is expected to further fuel the adoption of open banking processes and initiatives.

We are delighted to announce the introduction of a new and improved e-wallet solution that adds significant value to open banking providers. The service is designed to enable open banking providers to overcome some of the challenges they face when going to market.

STREAMLINING THE OPEN BANKING AND MERCHANT RELATIONSHIP

Payment Initiation Service (PIS) licences tend to be very specific and do not enable providers to hold merchant funds. Ultimately, this means that merchants need to spend time and effort striking different agreements with open banking providers and a bank or payment service provider. With that in mind, our team set about developing a solution that would do away with this inefficient process.

The result is Clear Junction’s new e-wallets for merchants. It essentially means that the open banking providers that have partnered and integrated with Clear Junction can approach merchants and simultaneously offer them open banking technology and settlement and collection accounts. Thus, their customers can benefit from a one-stop-shop solution which minimises the onboarding and integration effort required. Importantly, this approach also provides confirmation of funds, which is what makes it such a powerful solution.

HOW THE NEW AND IMPROVED SERVICE WORKS

Clear Junction provides open banking providers with a master e-wallet through which they can generate sub e-wallets for each of their merchants. The merchants can then send and receive payments in and out of their e-wallets (which are held and operated by Clear Junction and integrated into the open banking provider’s platform).

These e-wallets are connected to both Faster Payments and SEPA Instant payment rails meaning GBP and EUR payments are collected and reconciled instantaneously. It serves as a complete solution that significantly enhances the customer offering of open banking providers; not only is the process quicker for them, it is quicker for their customers, making their offering more attractive with the minimum of fuss. This additional workflow efficiency is expected to further increase the competitiveness of open banking compared to card acquiring.

“As a financial firm focused on providing services for banks and financial institutions, we are delighted to announce the launch of this new and exciting product for open banking vendors,” explains Berivan Demir, Product and Banking Relationship Director at Clear Junction. “The recent fee increase announced by Visa and MasterCard has helped to further emphasise the importance of open banking as an alternative for global merchants. Through our new e-wallet offering, open banking providers are able to enhance their customer offering, making the entire process of sending and receiving funds quick and easy. Our roadmap for the future includes the implementation of localised IBANs across major European countries to streamline the local PIS collections. We hope to implement and launch this offering in the near future.”

To find out more about accessing the master e-wallet service for open banking providers, please contact our team by emailing solutions@clearjunction.com

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