The Open Banking fintech Bud has launched an Open Banking and PSD2 payment API designed to provide an alternative to card payments and bank transfers.
The new product makes use of Open Banking APIs to allow users to initiate payments directly from their bank account to the recipients – providing a faster and cheaper alternative to existing payment channels without the necessity to share card details with third parties.
Alongside the launch, Bud and Blockchain.com have announced a pan European trial to make the new payment channel available for Blockchain’s customers. The product will allow Blockchain.com’s customers to fund crypto wallets directly from their bank accounts without sharing card details. As the partnership progresses, plans include expansion both in terms of its use within the Blockchain app and its roll out to European customers.
Ed Maslaveckas, Bud’s CEO commented “Payments will be an important part of the puzzle when it comes to realising the value that Open Banking can create. People look at Open Banking and think about aggregation, but in many ways, that’s the least disruptive part of it.
“The value comes when you can understand someone’s financial data and help them to act on the insight. Most of the time that action will result in a payment being made.
“Open banking payments have some amazing benefits for customers – they’re faster, with most UK transactions clearing within minutes, they’re cheaper for clients and removing the need to enter card details means that you don’t have to decide between convenience and security because you never have to enter your card details, the banks handle all the security.”
Xen Baynham-Herd, Blockchain.com COO commented “Open Banking presents an opportunity to redefine how customers securely link their bank accounts to their service providers by removing friction from the experience. We’re excited to trial Bud’s solution to improve the onboarding experience for our customers in Europe”.