Ecommpay’s partnership with Token.io sees new enhancements in open banking.
- Virtual accounts introduced in Netherlands, Spain, France, and Ireland.
- New features aim to combat IBAN discrimination in European markets.
- Expansion aligns with projected growth in A2A payments to 2027.
- Commitment to financial inclusion and improved local payment processes.
In a strategic move, Ecommpay has augmented its collaboration with Token.io to advance open banking frameworks across key European markets, specifically targeting the Netherlands, Spain, France, and Ireland. This initiative is poised to enhance account-to-account transactions by integrating virtual accounts, a significant feature that promises not only to expedite settlement confirmation but also facilitate streamlined refunds and payouts.
The advent of local International Bank Account Numbers (IBANs) within these expanded regions marks a critical advancement in addressing the prevalent issue of IBAN discrimination, where payments originating from foreign IBANs often face delays or outright rejection. By offering localised settlement solutions, Ecommpay aims to level the playing field for e-commerce merchants operating across these jurisdictions, thereby enhancing transaction speed and efficiency.
Chief Revenue Officer at Ecommpay, Moshe Winegarten, underscores the company’s dedication to promoting financial inclusion. He comments, “By providing businesses with local IBANs and seamless payments, we are reinforcing our commitment to driving financial inclusion and enhancing local payment capabilities to improve the customer experience, which, in turn, will support conversion for merchants.” This approach underscores a broader commitment to dismantling barriers within payment systems and fostering a more inclusive financial environment.
The partnership is further bolstered by industry forecasts suggesting exponential growth in open banking-enabled payments, colloquially termed ‘Pay by Bank’, which are anticipated to reach 5.3 billion transactions throughout Europe by 2027. Ecommpay, a pioneer in the realm of open banking since 2020, continues to leverage its Open Banking Advanced solution in collaboration with Token.io. The enterprise-grade solution’s expansion is marked by the inclusion of virtual accounts, an exclusive feature that enhances Ecommpay’s competitive edge in the fintech landscape.
Todd Clyde, CEO at Token.io, expresses enthusiasm over this enhanced partnership, noting that the integration of Token.io Virtual Accounts within Ecommpay’s solution has the potential to unlock significant capabilities. “We are excited to enhance Ecommpay’s Open Banking Advanced solution with Token.io Virtual Accounts, which enable instant refunds and payouts, among other key capabilities that help Payment Service Providers unlock the full potential of open banking payments for a vast range of markets and use cases.”
Open banking offers multifaceted advantages over traditional payment modalities. Merchants benefit from reduced transaction costs and accelerated access to funds, which collectively improve cash flow dynamics. Simultaneously, end-users enjoy the security and convenience of seamless payments without the necessity of divulging sensitive card information or manually entering data, thereby fostering user trust and participation.
The expansion is strategically designed to harness the capabilities of SEPA Instant, a pan-European instant credit transfer mechanism, thus augmenting the rapidity of fund acceptance. By enabling real-time payments across the Single Euro Payments Area, this feature significantly benefits both businesses and end consumers, ensuring a swift and efficient transaction process.
Utilising Token.io’s direct bank connectivity as its backbone, the broader availability of open banking payments stands to extend financial services to virtually anyone possessing a bank account within Europe. This advancement aligns with Ecommpay’s broader vision of fostering financial inclusivity and fortifying localised payment experiences.
The expansion of Ecommpay’s partnership with Token.io signifies a crucial step forward in enhancing open banking capabilities across Europe.
