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Link: Acquired.com
In a recent podcast discussion, Simon Lyons, Chief Strategy Officer at OB Connect, explored the world of open banking, shedding light on the challenges and opportunities it presents. He emphasized the importance of performance and confirmation of payment in the open banking ecosystem. Lyons argued that open banking has the potential to revolutionize lending, reduce fraud through tools like Confirmation of Payee, and change the way we choose payment methods. He also predicted that merchant pricing might become fixed for certain transactions. Ultimately, he acknowledged that while open banking won’t replace cards entirely, it will continue to reshape the payments landscape.
Key Points and Ideas:
- Open banking’s growth is driven by the shift in liability.
- Open banking is effective when there’s a gap between goods fulfillment and purchase.
- Contactless payments have surged due to the liability shift.
- Merchant acquiring is grappling with pricing challenges.
- Confirmation of Payee is a potent anti-fraud tool.
- Fraud can be mitigated but won’t disappear entirely.
- Payment method choice depends on the transaction’s risk profile.
- Aggregating banking products can benefit both customers and banks.
- Payments could be message-driven, offering multiple options.
- Transparency can improve with remittance information.
- Open banking should focus on enhancing lending for banks.
- Banks deserve incentives for investing in open banking.
Key Statistics:
- Open banking accounted for £476 billion in annual revenue for Visa and MasterCard.
- Merchant pricing may become fixed for certain types of transactions.
Key Takeaways:
- Open banking is transforming the payments landscape, especially for contactless payments.
- Fraud remains a challenge, but tools like Confirmation of Payee can help combat it.
- Payment methods should align with the risk profile of transactions.
- Aggregating banking products can drive value for both customers and banks.
- Remittance information can enhance transparency in payments.
- Open banking’s future lies in improving lending and providing incentives for banks to participate.
- While open banking won’t replace cards entirely, it will continue to reshape payment methods and options.
Podcast Score
| Type | Count |
|---|---|
| Facts | 9 |
| Ideas | 5 |
| Opinions | 7 |
| Recommendations | 4 |
| Total | 25 |
Marketing – Promotional Mentions: 1
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