What is Open Banking?
Open Banking is a broad term within financial services that refers to schemes designed to help consumers move, manage and make the most of their money, in secure and simple ways.
Open APIs developed by financial institutions enable merchants and organisations to build applications and services around those institutions, making use of functionality previously not widely available.
Open Banking has already gained widespread awareness and adoption across Europe and Latin America. In the UK, the Open Banking Implementation Entity (OBIE) creates software standards and industry guidelines to drive competition, innovation and transparency across UK retail banking. Find out more about what Open Banking is here.
Vyne leverages Open Banking to allow merchants to take consumer payments via bank transfer. Payments via bank transfer mean merchants are paid quickly, securely and cheaply, using a method that consumers know and trust.
How do I know Open Banking is safe?
Open Banking has been designed with security at its heart – here’s how:
- Bank-level security – Open Banking uses rigorously tested software and security systems. You’ll never be asked to give access to your bank login details or password to anyone other than your own bank or building society.
- It is regulated – only apps and websites regulated by the FCA or European equivalent can use Open Banking.
- Fine control – the consumer has the ability to control when, and for how long, they give access to their data. The consumer can also revoke this access at any time should they wish to.
- Extra protection – Bank or building societies will pay the consumer back if fraudulent payments occur. Consumers are also protected by data protection laws and the Financial Ombudsman Service.
Are there any limits to payments made using Open Banking?
Each Vyne payment is set up as a bank-to-bank transaction, which means payment amounts are only subject to bank channel limits for the payment rails used and the individual involved, similar to a bank transfer. More information on channel limits for UK and European banks:
| Payment type | Relevant info |
|---|---|
| GBP domestic single payments | Channel limits for Faster Payments Service (FPS) compiled by pay.uk |
| EUR domestic single payments | Channel limits for SEPA Instant Credit Transfer (SCT Inst) compiled by the European Payments Council |
How fast is Open Banking?
Vyne helps merchants get paid fast, meaning the funds arrive in your account within a matter of seconds, not days. Vyne payments are processed as bank-to-bank transactions.
| Payment type | Scheme | Typical speeds |
|---|---|---|
| GBP domestic payments | Faster Payments Service (FPS) | Funds arrive within a matter of seconds, although a payment is able to be processing for up to two hours before it must be completed |
| EUR domestic payments | SEPA Instant Credit Transfer (SCT Inst) |
Payments are required to arrive in under 10 seconds |
When will I receive the funds?
Unlike other payment methods, Open Banking transactions are authorised directly with the bank through mobile or online banking in real time, and in almost all cases funds move instantly. Vyne provides a SETTLED status within a few seconds of the request being accepted by the bank, to provide complete confidence in your payments.