Tink launches Risk Signals to unlock instant payment experiences

In certain European markets, bank transfers can take up to three days, creating uncertainty for businesses. The dilemma is whether to provide instant services, risking non-settlement, or wait for payment confirmation, risking customer loss. Tink’s Risk Signals means businesses no longer need to compromise between a quick checkout and reducing risk. This newly launched product feature allows transactions to be assessed in seconds while the payer progresses through the payment, adding minimal friction to the user experience.

Risk Signals uses account, balance, and transaction data shared under a valid consent by the payer to make more accurate risk decisions to minimise fraud. These risk checks occur seamlessly in the background at checkout. Based on Tink’s pan-European bank connectivity, Risk Signals enables a secure, fast, and high-converting payment method, particularly in markets without real-time settlements.

Risk Signals consists of a suite of risk checks which Tink can customise per bank and market. This includes:

• Velocity checks: Flag suspicious transaction activity;

• Transaction history: Assess fraud risk based on recent transactions, and previous non-settled payments;

• Live balances: Verify a user’s ability to pay with real-time balance information including overdraft, credit lines, and pre-booked orders.

Tink is launching Risk Signals across Europe, initially in Germany, with one of the world’s largest PSPs, Adyen, already using the service. On average, Risk Signals takes just one week to fully implement for Tink customers. There is no integration needed from the customer. The product feature is simply configured by Tink as a service and then active, making it easy to onboard customers.

Commenting on the service, officials from Adyen said that with Risk Signals, Tink is enhancing the Open Banking payment landscape, particularly in important markets like Germany. By leveraging the real-time risk analysis during payment processes, Adyen can offer a payment option that not only ensures security and reliability but also aligns with both merchants' and shoppers' expectations.

Representatives from Tink added that Risk Signals is an ideal fit for businesses looking to offer a secure and fast payment method especially in markets without real-time settlement – like Germany. With Tink’s Risk Signals, one no longer needs to compromise between a fast checkout and reducing risk. Already in use by PSPs like Adyen, Risk Signals uses account, balance, and transaction data shared under valid consent by the payer to prevent fraud which simultaneously contributes to providing an augmented experience for both merchants and consumers.