According to the official press release, CashSentinel has been using Budget Insight's Open Banking technology since June 2022 to offer a new payment method for the automobile industry: payment initiation.
The MyPortal Auto platform, one of CashSentinel's solutions, enables individuals and auto trade professionals to sell and buy automobiles in total transparency, through 100% controlled and secured transactions. This portal now features Pay, the payment initiation solution from Budget Insight.
Pay enables clients to make payments without leaving the business’ interfaces. Businesses can settle their bills and payroll directly via your application. Pay also allows for merchant payment initiation, wallet refilling, and instant payments.
Pay from Budget Insight helps CashSentinel propose a future-facing solution, with simpler and faster payments. This payment method now promoted on the platform is already used by close to 10% of customers, and CashSentinel's goal is to have 30% to 40% of users using this means by the end of 2022.
At the payment stage, users were frequently faced with the problem of their credit card payment ceilings. If they opted for a traditional bank transfer, they had to add a beneficiary to the bank account using the beneficiary's IBAN, to make the payment. They could do this themselves online or go through an advisor with validation periods sometimes being required.
With payment initiation, this administrative time is reduced or even eliminated depending on the banks, by direct validation of the transfer by the payer through the Budget Insight API. The method also has advantages for users and for CashSentinel:
The payment is made directly on the platform, without changing interface, thus guaranteeing a greater fluidity and conversion;
The customer no longer has to add a new third-party recipient or copy transfer information, or go to their bank branch;
The transfer is irrevocable, which considerably reduces the risk of fraud;
The cost of processing the payment is low.
New business models and opportunities are emerging in financial services, and these are underpinned by new principles of openness, flexibility, and agility. Therefore, as Viktoria Ruubel, CEO at IPF Digital, mentions in an article, borders are getting blurred. Large established banks are now partnering with fintech startups; financial players and retailers are partnering to bring new services to their customers; and established financial institutions are partnering with enterprises they traditionally regarded as competitors in order to extend their business into new customer segments.
As customers are turning to digital channels to manage all aspects of their life, there is a customer expectation for a seamless service ever-increasing, providing fast, convenient digital services.
Partnerships can offer businesses a mix of benefits and opportunities at one time. More generally, fintech partnerships create an opportunity for levelling the playing field, streamlining internal processes, adding technological capabilities, and improving the end customer experience.
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