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Link Money partners with Optty for Pay by Bank

Thursday 11 January 2024 10:56 CET | News

US-based Open Banking payment platform Link Money has partnered with Optty, a universal payments platform, to provide payment inclusivity.

Through this collaboration, Optty aims to help US-based merchant clients and partners to leverage Link Money's Pay by Bank solution. 

Purchases directly from merchant’s bank accounts 

With credit card fees and incidents of fraud on the rise, merchants are seeking credit card alternatives for a more convenient and less expensive way to accept payments. Thus, utilising Link Money's platform, Optty will be able to provide a payment method that minimises payment processing fees, mitigate credit card fraud and address churn issues for their clients. This Pay by Bank option will allow merchants to make online payments directly from their bank accounts, without the need for a credit or debit card, enabling to use their online banking credentials to authorise a payment and transfer funds.


Link Money has partnered with Optty, a universal payments platform, to provide payment inclusivity.

 

Optty's platform integrates with more than 115 of the worlds used alternative payment methods across nine payment architectures including Buy Now, Pay Later and Open Banking. This partnership will enable Optty's clients to utilise Link Money's Pay by Bank as a payment option. 

According to the official press release, by integrating diverse payment options Optty’s platform, both companies aim to offer tailored checkout experiences in minutes for merchants. Moreover, the partnership intends to transform the payment landscape by offering cost-effective, customer-centric solutions such as sleek integration and business user orchestration interface. 

As per a Link Money's official announcement, the partnership with Optty allows the company and their underlying merchants to get access to this A2A payment method in the US. Moreover, this will enable merchants to shift volume away from expensive rails and reduce costs while also reducing fraud and churn.
 

More about Link Money Pay by Bank solution

According to a previous interview from Link Money, payment processing in the US is very expensive for merchants, with an average cost of processing for credit or debit cards online from 2-to-4% for payment processing costs. On the other side, other markets – in the EU, for instance – saw notable evolution in payments towards bank-based payment methods and Open Banking, with 45% of all consumers electronic payments being bank-based. Moreover, the banking system in the US is extremely fragmented, with approximately 9,000 banks and credit unions. 

Link Money tackled this complex problem with a higher merchant margin and a vast market and proved that in the US, Pay by Bank is cheaper than debit/credit interchange. Moreover, the Open Banking leverage it by making it more secure. 

Based on this challenging market, the company built a sleek software layer over the traditional US bank transfer system, ensuring regulatory compliance and payment predictability. Its checkout experience mirrors credit cards, with consumers linking their bank accounts and click ‘pay,’ despite the underlying plumbing differences. Moreover, it also guarantees certain transactions for the merchants. 


Source: Link


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Keywords: partnership, Open Banking, B2B payments, payment processing, online platform, Pay by Bank
Categories: Payments & Commerce
Companies: Link Money, Optty
Countries: United States
This article is part of category

Payments & Commerce

Optty

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