The deal sees Tink’s technology embedded into Adyen’s single platform, enabling Adyen customers to offer Open Banking payments to consumers.
Adyen will use Tink’s payment initiation technology to enable businesses to access account to account (A2A) payments. Adyen’s Open Banking integration will launch first in the UK, with plans to expand to multiple markets in 2023.
Open Banking payments builds upon the partnership Adyen and Tink already have for Account Check technology, that lets Adyen’s customers instantly verify account ownership to simplify payouts. By using real-time data straight from individual or business bank accounts, this enables Adyen’s customers to automate payout setup, reducing operational overheads, and payment errors.
With the Open Banking solution, shoppers can pay directly from their own banking environment without leaving the checkout journey. Through one Application Programming Interface (API), Tink allows customers to access aggregated financial data, initiate payments, enrich transactions, verify account ownership, and build personal finance management tools.
This year, came with a few of updates and partnerships, extending its offerings. In August 2022, Adyen was rolling out its first in-house designed terminals to facilitate diverse payment use cases. Running on the company’s single platform, the devices remain flexible, in order to address the changing payment landscape and evolving customer needs. The solution was developed based on customer feedback to deliver augmented experiences with speed and flexibility. With their in-person payments offering, businesses have a full suite of terminals to choose from, enabling them to pick the solution that meets their specific needs.
With the NYC1 and AMS1 terminal range now in Adyen’s in-person payments repertoire, the company looks forward to identifying forward-thinking ways to advance consumer journeys.
As for partnerships, in September 2022, Adyen partnered with Cash App to offer the mobile payment method Cash App Pay to its US customers in 2023. By offering Cash App Pay, Adyen’s businesses will provide customers with a simple way to pay using their Cash App balance or linked debit card. This software integration will also provide Adyen’s business customers access to Cash App’s 80 million annual actives.
Adyen begun exploring the Open Banking ecosystem back in 2019 when it launched a payment service powered by Open Banking. The Dutch airline KLM was the first brand to roll out the new offering.
Therefore, it was only expected that in a time where the financial industry is seeing increasing demand for fast and frictionless digital experiences, Adyen and Tink to partner up to provide services that better meet the needs of customers. Forging these kinds of strategic partnerships is an important step towards mass-market adoption of Open banking powered payments.
Open Banking offers many key benefits compared to incumbent methods, such as lower transaction fees and reduced fraud. And with no need to manually enter card details, the user experience is already very competitive. Particularly in the UK and Nordics, where Tink data shows the average Open Banking payment takes less than 45 seconds and conversion rates for returning users exceed 90%.
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