Open banking fraud rates remain below wider UK payments industry benchmarks

For retailers looking to lower their transaction costs and reduce risk, the latest data on Open Banking is a green light. Open Banking allows customers to pay directly from their bank accounts, bypassing traditional credit card networks. The new report from Open Banking Limited shows that fraud rates for these transactions are significantly lower than traditional UK payment benchmarks. This is a major win for merchants who have been hesitant to adopt 'Pay by Bank' methods due to security concerns. As consumer adoption Grows, more lenders and point-of-sale providers are integrating Open Banking into their checkout flows. For a merchant, this means you can offer a seamless payment experience that settled almost instantly while facing less risk of chargebacks or fraudulent hits compared to legacy card systems. The data suggests that the built-in authentication measures required by banks are doing their job effectively. If you are evaluating your payment stack or looking to offer alternative financing triggers, this technology is proving to be a safer bet for your bottom line.

Source: Finextra — Lending

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