As a result of new regulations in the UK and Europe, Open Banking has emerged as a way to simplify access to financial information, helping you manage and take control of your money. It has disrupted the traditional banking system by giving you power over your financial information through regulated Third Party Providers (TPPs). It can also enable simple, secure payments without needing a physical card, instead only needing access to your online banking.
Paired with digital wallets, open banking payments provide a seamless way of moving money around and between accounts. Digital wallets (or e-money wallets) are great for storing money for budgeting, travelling or ecommerce shopping. However, digital wallets need to be topped up one way or another. Open banking payments provide what is probably the quickest, safest and most affordable way of topping up e-wallets.
Consumers and businesses can use open banking payments to move money from their bank accounts provided by traditional banks (Barclays, HSBC, Monzo etc) to their e-wallets (if their e-wallet provider offers top-up by open banking -which they should!). With a few clicks users of e-wallets can transfer money from their main bank account to their wallet. It’s a seamless top-up improving user experience with the e-wallet app.
What are digital wallets?
E-wallets (AKA digital wallets oremoney wallets) are online prepaid accounts where users can upload and withdraw money, and make transactions.
Let’s talk about the pros of digital wallets.
Here are some pros of digital wallets that are hard to argue with:
Most digital wallets are built on a modern tech stack which gives a better user experience to digital wallet holders.
Users can take advantage of virtual cards instead of their main banking card when shopping online. Those virtual cards can mitigate the loss if card details are stolen as they can be easily blocked.
Virtual wallets often offer better exchange rates on international transactions which makes them a perfect ‘travel companion’.
Digital wallets are great for budgeting
As for user verification security, the most common mechanisms are fingerprints, facial recognition or PIN – depending on your smartphone.
Contrary to popular belief, digital wallets are actually safer than physical wallets against theft. This happens thanks to the fact that they are heavily encrypted and secured with strong authentication.
Fena and e-wallets seem are a match made in heaven. As an e-wallet provider, you can quickly integrate fena’s open banking solutions to allow instant top-ups. Once implemented you will be able to incorporate open banking into checkout and instant fund settlements, which means you can transfer money to your digital wallet without having to wait for days.