Payop, an international payment processor and a payment aggregator, has partnered with Tink, a market-leading payment services and data enrichment platform, enabling it to add ‘Pay by Bank’ to its checkout options.

Payop is now live with the Tink Pay by Bank solution for merchant checkouts, which has already enjoyed noteworthy growth. The amount of executed payments more than doubled between January and December 2023.

Anastasiia Semenkova, CEO at Payop, explained the decision to implement the open banking solution: “When we decided to test open banking technology for e-commerce payments, our choice fell on Tink. We considered many providers but were impressed by Tink’s product offering and consumer-centric approach.

“Going into this, we were already positive about the future partnership, but in practice, it turned out to be much more than we expected. Tink showed us the potential of an open banking technology, providing secure payments that can be done in three clicks.”

Payop works with a variety of merchants from small e-commerce stores to large enterprises, offering a unique checkout solution with numerous payment solutions.

Payop and Tink hope to promote and grow the adoption of this payment method across Europe through this collaboration. Pay by Bank is available for Payop merchants across Europe including France, Germany, Netherlands, Spain and the UK.

Semenkova added: “The European market is very competitive. There are many payment options available in each country. But once consumers try Pay by Bank, we find that they don’t go back to other methods. The increase in adoption of Pay by Bank that we are seeing at Payop would be impossible without a stable and reliable partner. For us, it’s Tink. Tink maintains a high-quality API and keeps adding new banks and countries to its coverage.”

Pay by Bank

Pay by Bank is an online payment method that lets consumers purchase goods and services by initiating payments directly from their bank account to the seller’s account.

This account-to-account payment method provides a secure and streamlined experience, at a low cost, enabling merchants to differentiate themselves from the competition.

Ian Morrin, head of payments and platforms at Tink, also added: “We’ve already seen impressive volume growth in our collaboration with Payop, and we are proud to support them in their Pay by Bank solution. Pay by Bank complements the current payments ecosystem.

“It’s not just about creating another choice of payment at checkout, but offering consumers a payment method that has everything they may want and have come to expect – familiarity, speed, reliability and convenience.”

In its latest survey, consumer finance company Digido found that 80 per cent of Filipinos believe that formal credit options became more accessible in 2023. 

Overall, 42 per cent of respondents to Digido believed that the degree of accessibility of formal credit options remained unchanged and claimed to be usually approved when applying for it. Meanwhile, the remaining 38 per cent revealed that their access to formal credit has improved in 2023 compared to 2022.

The survey also found that 57 per cent of respondents had at least one outstanding loan from a formal lender, with non-bank financial institutions (NBFIs) with an online component making up 31 per cent, followed by traditional banks’ branches (25 per cent), digital banks (14 per cent), offline NBFIs (13 per cent) and apps or websites of traditional banks (nine per cent). Forty-eight per cent have also borrowed from friends or family members.

Easy application processes (60 per cent); convenient repayment methods (50 per cent) and high probability of approval (47 per cent) emerged as the biggest factors influencing Filipinos to apply for a formal credit source in 2023.

Other positive factors include a convenient repayment schedule (43 per cent), application through a mobile app (42 per cent) and attractive interest rate (30 per cent).

Filipino payment habits

Assessing their payment habits in 2023 compared to 2022, 64 per cent of surveyed Filipino borrowers self-report that they always pay their loans on time, whilst 36 per cent of respondents say they have missed repayments.

In terms of type of formal credit, personal loans were the most popular formal credit option, with 54 per cent of respondents having one in 2023 due to its flexibility and variety of use. ‘Buy now, pay later’ is the second most popular type of loan (12 per cent), followed by credit cards (six per cent) and business loans (six per cent).

In terms of the amount of loans availed, 40 per cent of respondents report that the amount of loans taken out in 2023 decreased compared to 2022. The share of respondents for whom the amount of loans has increased is at 28 per cent. Moreover, 41 per cent of respondents would like to raise the borrowing limit, indicating a significant portion of demand.

Fifty-six per cent of respondents also cite online as their preferred channel for obtaining formal credit, compared to 37 per cent for offline channels.

Room for improvement in terms of customer experience for all formal credit institutions remains, with 48 per cent of respondents also stating that loan rates need improvement, 35 per cent preferred a better repayment schedule, and 33 per cent would like to use more repayment methods.

The needs of consumers change over time, including their preferences in payment methods. Businesses must constantly adapt to these changes, both for their direct to consumer and business-to-business (B2B) transactions. 

Alexander Berrai, deputy CEO, emerchantpay highlights how offering multiple payment options can help to satisfy customers’ expectations, help businesses expand and succeed in a competitive market.

Meeting consumer demand

Traditional payment methods such as cash are declining in popularity among all age groups. emerchantpay’s Global Payments Outlook revealed Europeans are showing a growing interest in other payment methods. Several European countries are making promising strides towards digital payment adoption. With consumers having the choice to use cards, digital wallets, open banking products, direct debits, and Buy Now Pay Later, the variety of payment methods has sped up digitalisation.

Buy now pay later (BNPL) has been gaining traction in Europe and is widely known across the UK, where 17 million consumers used BNPL when shopping online in 2022. Millennials (54 per cent) are the age group that favours BNPL the most in the UK, along with Gen Z (50 per cent), Gen X (37 per cent), and Baby Boomers (23 per cent).

Depending on the price point of the product the consumer is purchasing, their preference may also change. For example, a packet of chewing gum at a train station may be convenient to purchase by card, but when furnishing an apartment, a consumer might want to spread out payments over several instalments and opt for a BNPL product.

To meet customer demands, we must look at how we can offer a seamless payment experience that offers a variety of payment methods.

B2B v consumer trends – could bank transfers bring the two worlds together?

In the UK, 52 per cent of all B2B payments are still done via bank transfer. This method provides an alternative to card payments or cash payments and can be done through a business’s banking app on existing technology.

Added to this, according to the same source, consumers are using their banking apps to send or receive money from their family and friends. As such, businesses should consider offering an open banking product for retail payments, when targeting businesses and consumers.

Local payment methods are key to increase conversions

Oxford Economics research showed that more than half (56 per cent) of consumers said that if they could not use their preferred payment method, it would permanently put them off shopping on a website. Nowadays, there are so many payment methods available, that it is easy to lose track.

Consumers in each region have their own unique preferences. Picking the right payment method for each country is crucial. For example, to stand a chance of being successful in Brazil, a merchant has to offer Pix as a payment method. Therefore, merchants who offer a payment method that is known and trusted by their target audience are more likely to see improved conversions.

Consider the environment in which payments will be made

Businesses need to consider customer preferences, how and where payments will be made and how to best address any potential barriers to transacting.

The number of organisations using SoftPOS solutions is set to increase globally by 34.5 million by 2027. This is due to SoftPOS solutions being flexible and cost effective. SoftPOS allows businesses in various sectors to accept payments using mobile devices, eliminating the need for additional hardware.

This can be explained because SoftPOS solutions are flexible, cost-effective for merchants, and ideal for various sectors. SoftPOS allows businesses to accept card payments using mobile devices, eliminating additional hardware and improving customer experiences by offering a simple solution to accept payments.

When considering how best to create ‘perfect’ payment experiences, businesses must have a clear understanding of the needs of their customers. Context will play a part, so being able to offer the right method for that purchase is critical in shaping a knockout payment experience. When convenience reigns supreme, an understanding of customer needs, combined with payment options that meet them, can help a merchant to stand out from competitors.

As financial technology continues to evolve, and as banking becomes more ’embedded’ in the lives of consumers and in businesses’ value chains, people are also becoming increasingly conscious of the choices they are making – bringing banks’ values and climate credentials into question.

Around one in four (24 per cent) European consumers would switch providers if their banks do not engage in climate or ‘ESG’ issues, according to research from Kearney. Many expect Gen Z to continue to drive this shift, armed with a long-term investing approach and an appetite for ethical and sustainable banking options. Three out of five (61 per cent) banking customers in the UK also want their banking provider to do more to create a ‘positive, social and environmental’ impact.

As people put more weight on the importance of being climate-conscious when it comes to banking and investments, banks across the globe are taking notice.

Almost three-quarters (73 per cent) of banks are expected to offer more sustainable banking propositions in the next five years, in response to increasing customer centricity, according to the new Economist Impact report released by the SaaS cloud banking solution provider Temenos, which surveyed 300 banking executives globally.

Furthermore, 37 per cent of banks are investing in low-carbon technologies and decarbonisation start-ups, with an additional 31 per cent of banks pursuing sustainability strategies which reduce emissions in both their supply chains and internal operations.

Sustainable investment on the rise

This shift in consumer sentiment has translated to an increase in sustainable investment. Seventy-four per cent of banks are looking to invest in environmentally friendly projects in the next five years, while 64 per cent are considering diverting capital from carbon-intensive industries.

Kalliopi Chioti, chief marketing and ESG officer at Temenos, discussed the importance of embracing emerging technologies for banks: “Evolving consumer preferences are putting immense pressure on banks to operate according to a clear set of values, and are actively moulding banks’ agendas and strategies.

“Whether it’s by using artificial intelligence to align investment strategies with clients’ values, or reducing their carbon footprint through economies of scale on cloud solutions, technology can be a powerful ally for banks on this journey.”

As banks look to reduce their carbon footprint, they are also increasingly moving operations to the public cloud, with over half (51 per cent) of respondents agreeing that banks will no longer own any private data centres in the next five years.

Web3 gaming firm Immutable is set to integrate Transak as the sole payment service provider for its Immutable zero-knowledge Ethereum Virtual Machine (zkEVM). The service is set to directly power fiat and Web3-based payments in gaming environments.

Transak’s service will be integrated into Immutable Checkout and Immutable Passport. The former acts as Immutable’s all-in-one transaction infrastructure for games and provides a configurable interface for game developers to integrate various payment options.

Transak’s on-ramp, off-ramp and nonfungible token (NFT) payment service allows fiat payments through credit and debit cards, as well as Apple Pay and Google Pay. Transak marketing head Harshit Gangwar told Cointelegraph that the payment rail will power in-game transactions for digital assets:

“These products will be used by hundreds of high-quality games over the next couple of years. The majority of those games are scheduled to go live in 2024.”

Immutable’s head of product marketing Michael Powell also confirmed that Transak’s initial integration will feature in its flagship Web3 games Guild of Guardians, Gods Unchained and Cross The Ages.

Transak has a proven track record as a payments infrastructure provider and is used by over 350 applications. This includes major Web3 wallet solutions like MetaMask, Ledger, Trust Wallet, Coinbase Wallet, LBank, Bitcoin.com, Bake (CakeDefi) and PancakeSwap.

Its payment service is also tried and tested in the Web3 gaming space and is actively used in many titles backed by Web3 gaming venture capital firm Animoca Brands.

Related: Animoca eyes SportFi ecosystem, becomes Chiliz Chain validator

Users from Decentraland, Splinterlands, Revv Racing, FormulaE High Voltage, MotoGP Ignite and other major Animoca titles use Transak’s solutions.

Gangwar notes that Transak users can pay for cryptocurrencies and NFTs with over 20 payment methods across 160 countries. Fees are dependent on payment methods and cross-country combinations.

“On a high-level, the pricing can be anywhere between 0.49% to as high as 3.49%,” Gangwar said.

Transak’s agreement with Immutable features custom pricing, which is touted to be lower than its default pricing. The infrastructure allows payments for more than 170 cryptocurrencies across 75 blockchains.

As Cointelegraph recently reported, the Web3 gaming sector remains a focal point for investment firms like Animoca. Co-founder Yat Siu highlighted the company’s investment in The Open Network blockchain and its integration into Telegram as a potential mass driver for Web3 gaming adoption. The messaging application has over 800 million users that can access blockchain-powered, Web3-enabled games.

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