Banking, payments, and e-money
What is payment initiation service, and how it can be used?
Last Updated: July 18, 2023Immerse yourself in the realm of financial technology, and you’ll discover that ‘payment initiation service’ isn’t merely another buzzword. It’s a game-changing innovation that’s reshaping the payment landscape. Payment Initiation Service Unveiled The payment initiation service is a pivotal innovation in the financial technology landscape. It’s a process, often facilitated via a digital platform or...
What is a banking superapp and what does it offer?
Last Updated: July 18, 2023As a forward-thinking fintech, you’re constantly in search of innovative ways to serve your customers better. One such game-changing innovation sweeping the financial industry is the advent of banking superapps. Picture this – a single, integrated platform where your customers can accomplish an array of tasks that extend beyond traditional banking. This is the essence...
What is banking-as-a-service, or BaaS?
Last Updated: July 24, 2023Banking as a Service (BaaS), an innovative model revolutionising the financial landscape, enables non-banking entities like fintech startups, tech giants, or diverse businesses to provide banking services. With BaaS, these entities no longer have to construct and manage their own banking infrastructures but can capitalise on the established platforms of traditional banks or e-money institutions....
What is an Account Servicing Payment Service Provider?
Last Updated: July 24, 2023Navigating the bustling world of fintech often throws up complex terms, and ‘Account Servicing Payment Service Provider’ (ASPSP) is undoubtedly one of them. But far from just being an abstract term, ASPSPs play a crucial role in the financial ecosystem. Let’s delve deeper into what an ASPSP entails and its impact on customer-centric financial services....
Who are Third-Party Providers (TPPs), and what is their role?
Last Updated: July 24, 2023The fintech landscape is evolving, and at the heart of this evolution lie the Third-Party Providers (TPPs). These innovative entities are not just participants in the financial sector but catalysts propelling it into the future. Let’s delve deeper into the two main types of TPPs: Account Information Service Providers (AISPs) and Payment Initiation Service Providers...
What is Account Information Service, and how it can be used?
Last Updated: July 25, 2023In the transformative world of financial technology, an Account Information Service Provider (AISP) stands as a beacon of convenience and control. Acting as a bridge between multiple financial institutions, AISPs amalgamate diverse financial account information into a singular, user-friendly interface, offering individuals and businesses a comprehensive understanding of their financial status. A New Era of...
What is Original Credit Transaction (Visa and Mastercard) and how is it used in payments?
Last Updated: July 25, 2023An Original Credit Transaction (OCT) is a unique form of payment transaction that underpins the functionalities of major payment networks, such as Visa and Mastercard. Serving as a conduit for directly crediting funds to a recipient’s Visa or Mastercard account, OCTs have dramatically reshaped the terrain of financial transactions. The Cornerstones: Visa Direct and Mastercard...
What is SEPA, and what types of payment transactions it facilitates?
Last Updated: July 25, 2023The Single Euro Payments Area (SEPA) has carved a pivotal niche in the realm of European electronic payments. By standardizing euro payments across a myriad of European countries, SEPA has led the charge towards a more coherent and efficient financial system. Covering an impressive span of 36 countries, including members of the European Union (EU)...
What is Step2 and what types of payment transactions it supports?
Last Updated: July 25, 2023In the European retail payments landscape, Step2 Automated Clearing House (ACH), operated by EBA Clearing, takes center stage as a harmonizing force that streamlines high-volume, low-value transactions. As a revolutionary pan-European system, Step2 bolsters the efficiency of transactions while maintaining cost-effectiveness, serving an array of payment types. Embracing Seamless SEPA Credit Transfers A key facet...
What is Target2, and what types of payment transactions it supports?
Last Updated: July 25, 2023In the intricate web of financial transactions, the cornerstone of large-value and high-priority euro settlements is the Trans-European Automated Real-time Gross Settlement Express Transfer System, fondly known as TARGET2. Developed by the collective might of the Eurosystem, comprising the European Central Bank (ECB) and the national central banks of the Eurozone, TARGET2 is a robust...
What is Faster Payments (UK), and what types of payment transactions it supports?
Last Updated: July 25, 2023Navigating the world of financial transactions has become increasingly streamlined, thanks to the advent of Faster Payments. This UK-based payment scheme revolutionizes the way electronic funds are transferred, facilitating near-instantaneous transactions between participating financial entities. With each transaction typically capped at £250,000, Faster Payments signifies a leap towards speedy, secure, and convenient financial exchanges in...
What is Bacs, and what kind of payments it supports?
Last Updated: July 25, 2023In the heart of the UK’s electronic payment landscape sits Bacs (Bankers’ Automated Clearing Services), an influential payment system instrumental in securely processing and settling a plethora of payment types. Direct Credit via Bacs: Prompt and Secure Payments Spearheading the Bacs offering is Direct Credit, a widely adopted payment method typically leveraged for executing regular...
What is NACHA (USA), and what types of payments it supports?
Last Updated: July 25, 2023The National Automated Clearing House Association, universally known as NACHA, is the linchpin of electronic payment processing across the United States. As a non-profit organization, NACHA presides over the efficient functioning of the ACH Network, setting the pace for security, reliability, and efficiency in inter-bank fund transfers. Direct Deposit: A Game-Changer Courtesy of NACHA Leading...
What is SWIFT, and what types of payments it supports?
Last Updated: July 25, 2023As we delve into the world of global banking, the acronym SWIFT (Society for Worldwide Interbank Financial Telecommunication) becomes synonymous with the secure transmission of financial information across international lines. Here, we explore its core functionalities and wide range of applications. Bridging Borders through Cross-Border Payments When it comes to cross-border payments, SWIFT stands as...
What is a correspondent bank, and what is its role in payments?
Last Updated: July 25, 2023In the intricate web of global banking, correspondent banks act as vital connectors. By providing services on behalf of other financial institutions, especially those in different countries, they weave a network of interoperability that supports international transactions. The Art of Payment Processing The world of financial transactions spins rapidly, and at its core, we find...