Written by – Jake B
Open Banking. To some people, it may get them thinking that this opens up their bank details. This couldn’t be further from the truth, it’s like saying chalk is cheese. It is becoming the most secure way for consumers to not only top up their accounts on other apps (i.e topping up your Mode GBP account) from their bank but also for merchants to accept payments. This is down to PSD2, which we mentioned previously in one of our blogs, where it governs what the security of Open Banking should entail and is very secure.
That’s why we’re utilising the security and speed that Open Banking offers for our payment platform for our users as well as for people that don’t have a Mode account. Meaning everyone can checkout using this technology, which you can see below 👇
We want to make sure businesses that have integrated Mode’s payment option are able to accept payments from everyone in the UK. Now, this might have you saying ‘but Mode, doesn’t this mean that you’ll be missing out on people downloading your app?’ and we wouldn’t blame you for saying this. However, our technology allows people to pay for products before signing up to Mode. They can make the payment using their bank account and sign up afterwards to claim their Bitcoin Cashback (if applicable).
When you select the Mode payment method, scan the QR code that is generated on your laptop/iPad/other electronic devices, you will be able to select your bank account for payment. Then you will authenticate the payment through your bank’s app via biometric authentication or passcode depending on what level of technology you have. We wanted to make it as simple as possible when compared to usual checkout processes/card payments.
As mentioned in our last blog, the merchant that you’re buying from will instantly receive the funds for the purchase you have just made. If you compare it to traditional card payments, where the settlement takes a couple of days to reach the merchant, it’s a substantial improvement for the merchant. Also, with the strong customer authentication steps that happen with Open Banking, the merchant can be sure that there is no fraud or be expecting a refund/cancellation of the order due to the payment being illegal.
All of this leads to the thought that one-day card payments may become less relevant as time goes on, and more businesses and consumers adopt Open Banking. We strongly believe in this technology and are looking forward to bringing our new payments solution to the market and adapt to the changing times Open Banking is bringing with it.