Why Open Banking & Instant Payments Really Matter to Your ... · Why Open Banking & Instant...

Why Open Banking

& Instant Payments

Really Matter to Your

Business

Brian HanrahanChief Commercial Officer

Sentenial Group

24/7SAAS REALTIME

MISSION

CRITICAL

Authorised &

Regulated by

the Financial

Conduct

Authority (FCA)

Offices in

6Countries

€35bnPROCESSED

ANNUALY

ISO 27001

&

ISO 9001

Certified

Open Banking

Merchant CompliancePSP Clearing Scheme Sponsor

Merchant Scheme

Legacy Mechanism

The new approach

Sentenial Product

Instant

Payments

Credit

Transfer

Open

Banking /

Request to

Pay

Direct

Debit

Payment

Accounts

Current Position

Transaction Volumes – Total Eurozone

Cards

Credit Transfers

Direct Debit

Traditional Approach

BANK

Sales

Financ

eXxxxx xx.xxXxxxx xx.xx

Xxxxx xx.xx

Xxxxx xx.xx

€

€ €

€

Payroll details

entered

Payments prepared to

send to a bank

Bank processes

paymentsAccounts updated

The Open Banking Approach

Open Banking

Open Banking

AISP – Account Information Service Provider

A

P

I

• Customer verification(incl. eMandates)

• Loan affordability• Account consolidation• Price comparison• Business statement downloading

Account

details please Uses

Open Banking

PISP – Payment Initiation Service Provider

A

P

I

• Customer needs to pay• Customer selects bank• Merchant sends request to bank• Customer confirms• Bank pushes money to merchant

Please pay

Instant Payments

Instant Payments

Instant Account-2-Account Transfers

• Push payment – credit transfer• Beneficiary has funds in seconds• SEPA Instant - €• Faster Payments - £

Instant Payments

Instant Account-2-Account Transfers

Open Banking + Instant Payments

Diverse applications of Instant Payments

P2PValue

exchanges between private

individuals

B2PRefunds,

compensation, employee

travel expenses

P2BPurchase and sale of goods

in POS, ecommerce

etc

B2BPayments to

suppliers, taxes, utilities.

Payouts to Merchants

Joining together

Open Banking + Instant Payments

Don’t underestimate – user experience is evolving fast

Open Banking + Instant Payments

Using Open Banking with Instant Payments

A

P

I

• Merchant gets paid in seconds• Cheaper than cards• No chargebacks• Higher transaction limits• No card details held by merchant• No tokenisation• No 3DS• No PCS DSS

Please pay

SEPA Instant

Open Banking + Instant payments

Using Open Banking with Instant Payments

A

P

I

• Retail PoS• E-commerce• P2P• Bill payment – payer initiated• Request to pay

Please pay

SEPA Instant

Uses

Open Banking

PISP – Payment Initiation Service Provider

Open Banking

PISP – Payment Initiation Service Provider

Open Banking

PISP – Payment Initiation Service Provider

Request to Pay

Source: UK Faster Payments

Open Banking + Instant Payments

Smmary

Instant payments live in Europe – 2 billion

TX/year in UK with TX limit of £250k-£20 million

New payment options will disrupt the market

Open Banking live in UK, 2019 for rest of EU

The Future?

Cards

Credit Transfers

Direct Debit

Open Banking + Instant Payments

Harness 15 years experience

delivering Account-2-Account

Payments

Brian Hanrahan

Chief Commercial Officerbrian.hanrahan@sentenial.com