An Open Banking Partnership that’s Changing the Ecosystem

Building a new ecosystem together

While lowering costs, reducing fraud and increasing conversions for merchants, open banking payments provide consumers with greater choice, convenience and transparency.

That’s why Mastercard and Nexi have joined forces to build an integrated payment ecosystem that offers seamless payment experiences while expanding choice for consumers when shopping online. Through this partnership, Mastercard Open Banking will facilitate e-commerce payments across Nexi’s gateways serving merchants throughout Europe.

Building an integrated ecosystem starts by taking a holistic approach. That’s why the collaboration between Mastercard and Nexi is focused on:

• Ecommerce support: An open banking payment method at checkout to provide fast, frictionless and safe payment experiences to customers
• Payment solutions: Single payments for goods and services and invoice payments
• Onboarding and verification: Account verification and onboarding process improvement thanks to enhanced transparency, control and security

Now that we have an understanding of the drivers behind the need for a more seamless checkout experience, let’s deep dive into how open banking payments make this a reality.

Open banking enables more payments choice for payment service providers and merchants by enabling them to use the underlying banking rails.

In other words, open banking is one simple API integration from a bank directly to a PSP or a merchant.

Unlike more traditional payment options, open banking is an account-to-account payment method that makes it possible to initiate digital payments to a merchant’s account.

Payments are initiated directly through existing authentication protocols with a consumer’s bank, including biometrics, to retrieve the necessary information to execute a payment, streamlining the experience.

As Nexi is one of the biggest PayTech companies in Europe, the new open banking collaboration will benefit countless merchants and consumers alike.

Merchants will benefit from an integrated payment flow in real-time resulting in a high conversion rate.

As payment authorization and settlement happens instantly, it enables quick access to funds and improved management of cashflow and revenue streams, which ultimately leads to lower risk of charge backs.

Since the payment is initiated directly from the consumer’s bank account based on the trusted authentication service provided by the banks, consumers get more transparency on available balance and can rely on a secure way to pay.  

Benefits for consumers:

• Simplicity: No need to remember bank account details or type in long card numbers
• Visibility: Bank account balance is visible before deciding to pay, reducing the risk of payment failures
• Security: Safe and easy payments using the bank’s usual online or mobile app login details to verify the payment