The partnership is in line with Coinmana’s expansion efforts, as the company is looking to increase coverage in key European markets by enabling real-time deposits and payouts for customers buying and selling cryptocurrencies. Volt offers a pan-European Open Banking solution for account-to-account payments that Coinmama can leverage to improve the speed and ease of on-ramp and off-ramp experiences for its clients. When compared to legacy payment methods for cryptocurrency trading that can take days to settle and can even end up being blocked by some banks, Open Banking payments eliminate friction and improve user experience.
According to the company press release, the payment solutions offered by Volt are near-instant, and they were designed to put users in control of their funds. Volt’s open payments gateway allows merchants and PSPs to process transactions securely between accounts held at more than 5,000 banks in the UK, EU and Brazil, covering more than 600 million accounts.
By partnering with Volt, Coinmama can use its hosted checkout page, which simplifies operations in European markets and allows users to authorise transactions using their preferred authentication methods such as face recognition systems or fingerprint-based solutions.
As part of The Paypers 2022 Enablers of Open Banking, Open Finance, and Open Data report, Holly Coventry, Vice President of Open Banking Payments for International American Express cited data from the Open Banking Implementation Entity and highlighted the segment’s rapid speed of growth. She also mentioned that, in the six months to March 2022, there were 21.1 million Open Banking enabled payments, which is more than three times that in the same period in 2021.
A significant proportion of people are now using Open Banking-enabled technology to make payments, particularly in the UK. The growth is accelerating, with more than 6 million individuals and businesses in the UK regularly using Open Banking services. The primary reason for this growth is that Open Banking allows people to gain greater control over their spending and initiate transactions seamlessly and securely.
Furthermore, Open Banking-enabled payments products can offer more transparency to consumers when it comes to their finances, which people are interested in protecting. Specifically, Open Banking technology gives consumers more visibility and reassurance about how their financial data is used and who can access it while making the payment process itself more secure.
As far as use cases are concerned, Open Banking payments have different benefits depending on the pain points that users are trying to solve.
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