The Future of Payments with Open Banking

Increasingly, we are moving towards a cashless world, meaning without the use of physical currency. This advancement allows for the creation of tailored financial solutions for each individual’s payment experience. The pandemic accelerated this process by a few years, but it would have naturally occurred even if it hadn’t happened.

The reason is quite simple: open banking offers much more security and convenience for its users. In Brazil, it is already moving towards offering payment options beyond PIX, such as paying bills at commercial establishments and a decentralized financial market that uses data sharing and AI (Artificial Intelligence) to simplify the lives of its customers.

Therefore, let’s talk a bit more about the main differences between traditional banking models and open finance options. This way, you can understand how these changes will positively impact your life.

Increased security

One of the main benefits of open finance is the traceability of transactions. Unlike cash, which once stolen or lost is nearly impossible to track, any operation carried out through open banking can be traced within seconds, showing the origin and destination of any amount.

Instant transfers

In the traditional banking model, transactions like DOC and TED can take more than 48 hours to clear. A check deposited into a conventional bank account will only have the amount available for withdrawal the next day, and depending on the amount, it may take even longer.

With open banking, all operations occur instantly. Additionally, it also eliminates the paperwork required, making the banking model much more sustainable for the environment.

Low-cost transactions

Another point to consider in operations carried out through open banking is their cost. Practically all transactions are free. When there are fees, they are related to options like cash withdrawals at ATMs, for example. This is becoming less necessary every day.

In contrast, traditional banks charge fees for practically all their transactions, not to mention the account maintenance fees.

Real-time payments

Real-time payments provided by open banking are a tremendous advantage for those looking to boost their business. Nowadays, it’s possible to confirm transactions at the moment they are made, allowing merchants, for example, to release goods or provide services immediately and without the risk of defaults.

Cashback and rewards

Cashbacks and rewards are other major incentives offered by open banking. This type of feature encourages the use of the model and even motivates purchases at establishments that offer it as a payment method.

The increasingly widespread presence of open banking in people’s and businesses’ daily lives is inevitable. With so many advantages for institutions and customers, it becomes impossible to avoid this future that has already arrived to make life easier for all of us.

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