The Future of Payments with Open Banking

We are increasingly moving towards a cashless world, that is, without the use of cash. This advancement allows the creation of financial solutions tailored to each person’s payment experience. The pandemic accelerated this process by a few years, but it would have happened naturally, 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 that go beyond PIX, such as paying bills at commercial establishments and a decentralized financial market, which uses data sharing and AI (Artificial Intelligence) to make life easier for its customers.

Therefore, we will talk a little more about the main differences between traditional banking models and open finance options. This way, you will be able to understand how these changes will positively impact your life. 

More security

One of the main benefits of open finance is the traceability of transactions. Unlike what happens with cash, which once stolen or lost is almost impossible to locate, any operation carried out through open banking can be tracked in seconds, showing the origin and destination of any amount.

Instant transfers

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

When we talk about open banking, all operations occur instantly. Furthermore, it also eliminates the bureaucracy that requires the use of paper, making the banking model much more sustainable for the environment.

Low-cost transactions

Another point that must be considered in operations carried out through open banking is their cost. Virtually all transactions are free. When there are fees, they relate to options such as withdrawing cash from ATMs, for example. Which, every day, is becoming less necessary.

On the other hand, conventional banks charge fees on practically all their transactions, not counting account maintenance fees.

Real-time payments

Real-time payments provided by open banking are a tremendous advantage for anyone who wants to take off their business. Nowadays, it is possible to confirm transactions at the time they are carried out, allowing the merchant, for example, to release goods or provide services immediately and without the risk of “defaults”.

Cashback and prizes

Cashbacks and prizes are other major attractions offered by open banking. This type of resource encourages the use of the model and even motivates purchases at establishments that offer it as a means of payment.

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

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