OPEN BANKING

Open Banking, explained

Make or receive online payments directly from your bank account. Just sign in to your bank from the merchant’s site/app in a snap. No app to download, no manual entries, no account to create.

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What is Open Banking?

Open Banking is a secure way for consumers to share their financial information with merchants or service providers via secure application programming interfaces (APIs). By giving merchants secure, regulated access to select financial information, consumers can utilize their data to make payments directly from their bank accounts. Financial data, like balance history, identity information, etc., can make financial services faster and more convenient.

The Trustly Open Banking Glossary

For a comprehensive breakdown of Open Banking terms, check out the Trustly Open Banking Glossary.

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132.2 million

The amount of global Open Banking  users by 2024

479%

Expected growth in Open Banking  from 2023 to 2027

$330 billion

Open Banking Payments expected  value in 2027

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Open Banking’s Value

Lower payment processing costs

Open Banking enables account-to-account payments, reducing costly swipe fees associated with card schemes.

Improve the  customer experience

By leveraging a simple and safe UX, with no account registration, merchants can improve payment conversion and deliver streamlined financial services.

Harden data security

Strong consumer authentication is inherent to Open Banking, significantly reducing fraudulent activities.

Personalize financial  experiences

By accessing real-time, accurate financial data from consumer bank accounts, merchants can better tailor their financial products and services.

How it works

With Open Banking, third-party providers connect with banks via APIs. The third-party provider (Trustly) establishes consumer consent to retrieve financial data from consumer bank accounts. Rules established by third-party providers tell the API to extract specific data according to the use case: initiate account-to-account payments or facilitate financial services.

There are five key players in the Open Banking ecosystem:

Banks

Build and maintain APIs, making consumer financial information available

TPPs or PISPs

Licensed third-party providers (TPPs) or Payment Initiation Service Providers (PISPs): Integrate with bank APIs

Merchants

Work with TPPs to offer innovative pay-with-bank payments or financial services

Consumers

Final beneficiaries of Open Banking solutions

Regulators

Ensure a fair, consumer-centric Open Banking ecosystem

Trustly and Open Banking

Since 2008, Trustly has remained committed to the global expansion and adoption of Open Banking. As a leading Payment Service Provider, we remain committed to the opportunity Open Banking affords merchants and consumers. Trustly has been a driving force for Open Banking in Europe and is continuing the momentum in the United States and Canada.

Our digital account-to-account platform allows consumers to pay for purchases by signing into their bank accounts, bypassing the card networks. We leverage APIs to establish industry-leading banking connectivity and deliver a complete solution that includes payments, KYC, underwriting, instant payouts, identity verification, and more.