Open Banking — Payment Processing Glossary | Payment Gods

Open Banking is a secure technological framework that enables the sharing of financial information, such as transaction data and account balances, between banks and authorized third-party providers. This sharing occurs only with the explicit consent of the customer, putting them in control of their financial data. The primary goal of Open Banking is to foster competition and innovation within the financial services industry, leading to a wider array of services and potentially lower costs for consumers and businesses alike.

For merchants, Open Banking presents exciting new opportunities for optimizing payment processing and enhancing their merchant services. One of the most significant benefits is the potential for cheaper payment processing. Traditional credit card processing often involves multiple intermediaries and associated processing fees, which can eat into a merchant