"Providing a glimpse of the future for digital card-less payments"
Chris Michael, CTO of Open Banking
In October 2015, the EU adopted a revised Payment Services Directive, known as PSD2. The new rules included aims to promote the development and use of innovative online and mobile payments through open banking.
Reflow, a payment company created explicitly to offer bank to bank payments, approached FinGoPay in October 2019, asking us to be part of their open banking retail pilot. FinGoPay’s biometric finger vein payment technology offered an innovative and unique way for Reflow to combine Bank-to-Bank payment with physical, face to face payments at point of sale.
The fixed term pilot took place in February 2020, with a food vendor in Tower Hill. Customers who signed up to FinGoPay and had a Starling Bank Account could use FinGoPay to pay for their meal, with the payment being taken directly from their Starling account, and being deposited directly into the merchant’s bank account.
The result was the world’s first bank-to-bank, face-to-face payment using Finger VeinID, demonstrating the future potential of this type of identity-authenticated customer experience.
The Reflow and Fingopay partnership allows retailers and merchants to handle bank-to-bank transactions (in addition to traditional card rails), reducing costs and receiving instant settlement in up to three hours, as opposed to the typical three to five-day lag time with card payments.
“FinGoPay and Open Banking gives the end consumer a truly frictionless payment experience and delivers what future generations will expect in terms of payment security and convenience. FinGoPay is now part of the Open Banking ecosystem so partners and customers can align with FinGoPay’s roll out in Manchester and more widely across the UK.” Trustee of the *OBIE, Imran Gulamhuseinwala OBE
“Reflow’s Variable Recurring Payment APIs built into our core payments platform enable a number of innovative use cases with ease, security and speed. It was great working with Open Banking to understand their vision and work closely with Fingopay.” Diptesh Mishra, CTO Reflow
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