The future of payments is on everyone’s mind and experts all over the world are looking to understand what kind of technology will help shape that future. Zimpler is an Account-to-Account payment solution and here is why they think Open banking and Account-to-Account is here to stay.
“Two years ago we saw a strong movement towards Account-to-Account, and with PSD2 right around the corner, it made sense for us to work in that space. Banks and companies in other countries were moving in that direction with similar solutions. We saw it as the future of the payments industry, providing simplicity, security, and value to our customers,” says Annika Gunnarsson, product owner and part of Zimpler’s leadership team.
Zimpler’s pivot towards Account-to-Account payments is an interesting one. There were several reasons for the shift, one of them being the potential for a solution like that, but the main reason was that Zimpler saw the impact it would have on the future. Annika continues and points out that being agile and looking at what the future holds is key in an industry like Fintech.
“Being in such a fast-paced industry means always having one eye on the horizon, at all times, to see what’s bubbling up. Right now, open banking and Account-to-Account is where we want to be, but who knows what the next big tech will be? Having an agile approach to product development will help bridge that gap towards the future.”
It all comes down to ease of use for the end-user
Account-to-account payments enable companies to manage incoming and outgoing payments for their users, giving access to instant bank payments and payouts, as well as an automated compliance solution.
“We make payments as simple as possible. You don’t go out and buy something just because you want to hang out in the payment method’s interface, it’s just something that is necessary. So we focus on making the payments as efficient, reliable, and as fast as possible – so you don’t have to think about it.”
The Account-to-Account payments boom all comes down to simplicity and visibility, and that’s why Zimpler moved into the market. With bank payments, you’re able to see your accounts and the funds you have available, compared to a credit card that can get lost or stolen – both a security risk and an unnecessary hassle.
Simplicity is key for end-user expectations, but there is still information that needs to be in place to know who your customer is. With an Account-to-Account solution, that is handled in a few seconds, with just a couple of clicks for the end-user. Because that’s what today’s shoppers expect! Filling in forms and paperwork is a task better left in the past.
“Our processes for background checks on the user means less hassle for our customers, and there’s also a lower risk of the customer abandoning the purchase at checkout. Because we handle so many of the check boxes; it’s a frictionless process.”
Leveraging the end user’s expectation on speed and security
Zimpler offers a bank payment solution that manages KYC procedures in one flow, with a customisable layout, branded to fit their unique customers. The secret sauce? All the above. The speed of open banking, and the security it provides, combined with not being redirected from the cashier to an unknown payment flow.
Annika says: “There are a couple of players in the Account-to-Account area where we are, but what really makes us unique is how adaptive we are. We have a very flexible product that can be modified to fit our customer’s needs, something that most of our competitors cannot do.”
“When we develop our products, we always talk to our customers. It’s not important for us that our brand is most visible, but that our payment flow is fully adaptable to the customer’s brand. That kind of flexibility is unique in the market.”
Zimpler has grown spectacularly over the last few years, seeing a 300 per cent increase in revenue for 2020 compared to the previous year.
“One of the most important things is that we have a highly metrics-driven culture, which is also shown in the high conversion that we are seeing in the company and the product, which all brings value to the customer.”
Adaptability is the key
With Zimpler’s growth spurt showing no sign of slowing down, Annika believes that the strong movement towards online payments and the extreme push for digitalisation that we’ve seen over the past couple of years has helped fuel that momentum. “It’s a trend we can see will continue,” she says. “People expect transactions to go faster, and our solution is as fast as they get.”
Annika points out that adaptability is key for ease of use and for business development.
“As a financial institute, regulation is of course high on our agenda. Knowing the rules and regulations in each country that we operate in, or want to operate in the future, is crucial for us. But we also need to keep in mind how young our industry is and that we need to know that regulations, as well as technology, are evolving,” says Annika.
Zimpler has invested heavily in products and processes for anti-money laundering and customer knowledge. Annika explains this as another part of monitoring the development of the industry.
“Our own anti-money laundering tool is built to be adaptable. We can scale it so that we’ll be able to move fast when adding a new feature or moving into new countries. It’s also a way to keep the knowledge of regulation high within the company, and foster an innovative culture that we need as we continue to grow.”
She continues: “Banking infrastructure doesn’t affect us that much when building the product, but the user experience is definitely being changed from one bank to another. Usually, when we look at the bank infrastructure, we can see that the banks are kind of adapting towards each other, but it could also be different in a specific country between the banks, which also affects the way our solution looks and feels.”
The next move for open banking
With increasing demands coming from the end-user for speed and user-friendliness, Annika emphasises that open banking and Account-to-Account payments are the place to be.
“We are very light on our feet and we move fast,” says Annika and continues, “We need to keep our agile approach as we move forward. That and our amazing employees is what will enable us to keep our innovation speed and to continue to develop as new tech becomes available.