The progressive adoption of open banking that allows A2A payments (Account to Account or payments from account to account) from the entry into force of PSD2 it is already a reality. These advances have brought about a full-blown revolution in the entire financial sector because they offer the possibility of integrating more innovative and efficient processes.
Kevin., 100% secure direct account-to-account payment infrastructure, ensures that A2A payments favor the acceleration of companies and that 2023 will be the year in which this new payment method takes off in Spain where, until now, only 5% of the population uses it compared to 85% in the Baltic countries. In fact, the PayTech has helped more than 7,000 companies across Europe to get more profitattract a greater number of customers and facilitate its scalability.
According to a PwC study, open banking will move revenues worth US$9.780 million in 2023 and expects that by 2030 electronic payments will practically triple in the world. Therefore, from Kevin. they insist that companies must be able to apply it to their business model in order to reap its benefits.
PayTech stands out six traits of A2A payments that help companies both in their scalability and in attracting customers and improving their margins:
Expansion of the potential market
Many companies make the mistake of offering a payment method that only works for local customers without taking into account the globalization that consumers demand today. Kevin. offers a well-developed banking network that covers 27 EEA countries, so it can reach more than 350 million customers across Europe.
Faster and more efficient payments
According to the Baymard Institute, 12% of abandoned carts occur because the desired payment option is not offered. Being open to adopting new methods that are faster and more convenient for customers, such as A2A payments, will help companies expand their business
Greater security
Many merchants have problems with chargebacks or other types of fraud. Account-to-account payments offer a high degree of security compared to other methods.
The risk of fraud is almost 0% Because customers, when they make a payment in any e-commerce, do not need to enter credit card numbers or their bank account number, they simply have to access their bank app and approve the payment.
Improvement of the treasury of companies
When a customer pays by credit card, the business may not receive the funds for days or even weeks. Waiting for the money to pass from the client’s account to the company’s bank account means less liquidity for the business.
Instead, A2A payments, both national and cross-border, are direct, they use instant payment methods, eliminating intermediaries, so funds travel quickly and also improve profit margins. “Usually the cards keep a commission of between 1.2% and 3% approximately on each operation. We charge a fixed price that is usually cents depending on the volume that is mediated with the company”, says Jennifer Díaz, Kevin’s manager. Iberia.
Removal of legacy systems
If different legacy payment systems are used in each country, it is not possible to share processes or economies of scale. Open banking and A2A payments simplify this entire process, blurring the boundaries and saving businesses time, money and frustration. This means more money to invest in your business where you need it most.
Consistent user experience
One problem merchants face with payment methods is that they can compromise the user experience. For it, there are white label solutions like the one Kevin has developed.which means that the brand experience is consistent at all times and will be fully aligned with your brand identity, regardless of country or language.
