Open banking has taken Europe by storm and is rapidly reaching the United States. President Biden signed an executive order in 2021 to promote economic competition and propel the Consumer Financial Protection Bureau (CFPB)’s effort to regulate open banking in the US.
Traditional banks are becoming known for their legacy processes, and open banking offers a window of opportunity for organizations. Fintech companies like Link Money can help merchants have a more straightforward banking experience, help them make better decisions, and reduce stress.
By leveraging open banking, you can get a head start on payment options that benefit your business. Keep reading to learn how Link Money can simplify your payment experience.
Pay the same rate, regardless of the transaction or bank
Link Money charges you the same payment processing fees—no matter who pays you, where they pay you from, when they pay you, or which bank they use. Link Money’s flat rate helps you easily predict your expenses and revenue, making better budgeting possible.
Traditional credit card processing fees from providers like Visa or Mastercard are high (up to 4%), depending on your chosen provider; they also have complicated fee schedules and unexpected costs (merchant discount rates and per-transaction fee) that can throw you off guard.
Additionally, credit card payments come with the risk of fraudulent chargebacks which can affect your business further. This inconsistency can make it hard to accurately predict the funds coming in. Or you’d have to do the math each time, depending on the transaction. Although merchants sometimes can pass the processing fee to the customers (as a surcharge), doing so can affect customer perception and willingness to purchase from you again in the future.
However, Link Money charges a flat fee of 1.50% + $0.50. With Link Money, your customers can pay you straight through their bank, and you’ll be charged a standard processing fee, regardless of the amount of transaction or which bank they use.
If your company deals with many transactions of various sizes, switching to Link Money can help you grow your bottom line in the long run.
Receive secure payments in just a few steps
While credit and debit cards give you the perception of being secure, they’re not foolproof payment methods. They are vulnerable to theft, fraud, and loss, which can affect your business if a consumer disputes the transaction or questions your security protocols.
Link Money offers Pay by Bank, which is a password-protected payment method and offers additional security barriers that credit cards can’t. Additionally, as money moves from bank to bank, these transactions are settled as quickly as card payments. This process lowers the risk of fraud and human error, saving your business time and money.
That’s not all—using pay by bank is quite convenient for your customers too, as they don’t have to enter lengthy card details or addresses—they can make payments in just a few clicks. In addition, simplifying the checkout process lowers the chances of abandoned carts that can affect your revenue.
“Allowing consumers to easily transfer bank account information and other data is the heart of open banking, a system where tech firms and other third parties create applications that can be added to a user’s existing banking infrastructure,” states Bloomberg Correspondent Evan Weinberger.
By streamlining the payment process through Link Money, you save time, and effort and set up more guardrails to ensure the security of payments for you and the consumer.
Use the web, app, or mobile for your transactions
Link Money lets you use the web, app, or mobile to collect payments. Offering this convenience could increase sales and improve your payment process's efficiency.
According to the Harvard Business Review (HBR), "[...] customers who used 4+ channels spent 9% more in the store, on average, when compared to those who used just one channel."
Additionally, your shop's analytics will inform you about how consumers shop on your site or make payments. Providing multiple options for payment can help you lean more into consumer preferences, be it shopping on a desktop or mobile. For example, the HBR report goes on to state that retailers with their site rather than relying on other retailers led to "13% greater in-store spending among omnichannel shoppers."
You can offer your consumers a better payment experience through Link Money and see your transactions come in quickly on your app, mobile, or the web—all in one dashboard. In addition, integrating Link Money with your online business, like a Shopify store, can ease out the part that matters most: tracking revenue.
Link Money puts you in control of your banking
Link Money, powered by open banking, puts you in control of your finances. Get insight into your revenue, ensure you get paid on time, and integrate your payment processes easily with Link Money. Learn more about Link Money and its products to benefit from, and offer greater simplicity in your payment processes.