The API is meant to offer businesses and consumers a method to pay for goods and services or transfer money. It is an alternative to credit and debit card payments, bank transfers, and traditional payments processors.
The solution is created by PSD2, the European Directive that oversees ‘Open Banking’ in the EU, and its features facilitates:
immediate settlement, as cleared funds are received in few minutes
secure and fraud-proof, provided through the fact that the API requires active bank authentication before any money can leave the account
it is cheaper, since payments do not have the high fees of card transactions
the process is streamlined, because customers do not need to manually type in a business’s bank account number to transfer money to a business
The Payments API began beta testing with companies such as Moneyfarm and fintech platform Wealth Kernel. All that being said, TrueLayer expects to launch an updated Payments API later in 2019, which will add features including future dated payments, standing orders, and batch payments.
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