Payment Initiation is a crucial element of the European PSD2 directive, which necessitates that banks provide support for Payment Initiations, along with fulfilling other requirements. With Payment Initiation, third parties like Pay can execute online transactions on behalf of consumers using their bank accounts. Pay. has partnered with ibanXS to enable this service. ibanXS provides access to every European bank through a cloud-based platform, facilitating Payment Initiation for Pay.
Currently, a pilot program is in progress, with payment initiation slated to become active for all customers from May 2023.
Payment initiation is a type of payment service that allows an external provider, such as Pay, to initiate a payment on a customer's behalf using their bank account. The customer must give their explicit consent for the Payment Initiation to take place. This payment method is often employed for online payments, enabling customers to make purchases without manually entering their payment details. In the European Union, payment initiation services fall under the Payment Services Directive (PSD2).
As a Payment Initiation specialist, ibanXS equips Pay. with the latest and most secure payment technologies, enabling Pay.'s customers to process online payments efficiently and effortlessly. This collaboration offers merchants an even faster, more secure, and reliable payment solution, which results in an enhanced user experience for consumers and increased customer satisfaction. The combined expertise and technological solutions of ibanXS and Pay. have a positive impact on the payment market, promoting further innovation.
"With the collaboration between ibanXS and Pay., we can provide Pay.'s customers with a secure, fast, and cost-efficient payment solution in line with the latest security protocols. We are excited to embark on this journey with Pay. and enable Pay.'s merchants to benefit from this service," says Edy Bruinooge, Director of ibanXS.
Over time, Payment Initiation is likely to become more prevalent and popular in the Netherlands. This increase is not only due to the mandatory support of Payment Initiation by all Dutch banks, but also because alternatives like iDEAL are becoming costlier and less attractive for merchants.
Read more about Payment Initiation here.