Open banking enables bank-to-bank payments, meaning that (in theory) merchants should be able to accept payments without having to hand over fees to Visa or Mastercard or other payment providers, such as Stripe. The challenge, however, isn’t just implementing open-banking based payments as a checkout option — there are are already a host of open banking tech providers — but persuading customers to switch to a new payment option they are likely unfamiliar with.
The solution, according to fintech Trilo, is to offer customers incentives, for using open banking, such as cashback or additional perks, coupled with a user-friendly payment flow. The U.K. startup is breaking cover today with the launch of its alpha.
“Businesses lose out on so much of their hard-earned money whenever a payment is made with cards, their transaction fees can be up to and above 4% in some cases,” says founder