Open Banking Trends Shaping Mobile Payments

Today’s chosen theme: Open Banking Trends Shaping Mobile Payments. Explore how APIs, real-time rails, and consent-driven data are transforming how we pay, get paid, and build trust—right from the mobile screen. Subscribe and join the dialogue.

Why Open Banking Is Rewiring Mobile Payments

Secure bank APIs allow mobile apps to initiate account-to-account payments directly, bypassing legacy card steps. The result is faster settlement, lower costs, richer status data, and experiences that travel with the customer across devices and channels.

Mobile-native customers expect payments to be instant, visible, and reversible when needed. Open banking meets those expectations with authenticated flows, proactive notifications, and context-aware prompts that reduce friction without compromising safety or control.

Account-to-account payments can cut interchange costs, reduce chargeback exposure, and speed cashflow. For merchants, that translates into better pricing power, more flexible loyalty offers, and a checkout that actually helps increase repeat conversion.

Regulation and Standards Accelerating Change

Europe’s PSD2 legitimized access to accounts and payment initiation, while UK’s CMA Order set a blueprint for interoperability. Markets from Australia to Brazil extend the model toward open finance, widening use cases beyond payments alone.

Regulation and Standards Accelerating Change

New real-time payment systems, from SEPA Instant to FedNow, speak the ISO 20022 data language. That richer, structured data improves reconciliation, risk checks, and user transparency—perfect fuel for intuitive mobile payment journeys.

Strong Customer Authentication That Feels Human

Biometrics, passkeys, and step-up challenges protect payments without derailing the flow. Risk-based checks activate only when needed, so everyday purchases move quickly and sensitive moments receive extra, reassuring scrutiny.

Granular Consent and Easy Revocation

OAuth-style consent lets users allow specific accounts, scopes, and durations. Clear dashboards and one-tap revocation return control to the customer, converting anxiety into confidence and encouraging repeat engagement with mobile payments.

From Cards to Account‑to‑Account: New Journeys in Checkout

Deep links open a known banking app or secure web flow where users authenticate and confirm. Funds move instantly, status updates return quickly, and customers remain confident because everything looks familiar and explainable.

From Cards to Account‑to‑Account: New Journeys in Checkout

With payment initiation and real-time rails, platforms push earnings to bank accounts within minutes. Transparent confirmations and predictable cutoffs help workers plan bills, savings, and investments without waiting on slow card settlement cycles.

Data‑Driven Innovation and Embedded Finance

Spending insights surface at the point of decision, not weeks later. If a bill looks unusually high, the app can suggest a better plan or a timed payment, turning anxiety into informed action.

Global Momentum and Real‑World Stories

A neighborhood shop added bank‑pay at checkout and saw fewer abandoned carts and quicker settlement. The owner used the savings to fund a loyalty program, and customers noticed how effortless returns became.