Some travel money suppliers are embracing open banking technology as a payment option.
Open banking allows travel money suppliers and banks to communicate securely and facilitate a bank transfer using their mobile banking app, removing the need to enter manual bank transfer details.
What are the benefits for you as a consumer?
Some companies charge a debit or credit fee, and by using open banking, you can enjoy the same benefits of ease of ordering and payment whilst essentially doing a bank transfer.
When transferring money, there is scope for error. When using open banking, the details are populated for you, so the transfer is sent with the correct amount to the correct bank with the proper reference number, which means the money supplier can reconcile your payment quickly and send your travel money without delay.
Is open banking safe?
Open banking is safe. Open banking works on very secure data-sharing practices to protect customer data; arguably, this is more secure than traditional banking technology.
All companies using open banking are heavily regulated and governed by stringent controls to keep your data secure.
Furthermore, the organisations allowed to use open banking are listed in the FCA Open Banking Directory.
Which Travel Money Companies offer Open Banking?
The following companies currently offer open banking:
How does this work in practice?
If the supplier offers open banking and you choose this option, you will be asked to select your bank (Travel FX used for this example):
Then you would typically scan a QR code which will open a page on your mobile device.
Once you have selected your bank, you will be directed to your mobile application to complete your payment.
Key Takeaways
Integration of Open Banking in Travel Money Payments
Some travel money suppliers are adopting open banking technology for payment options.
Streamlined Bank Transfers
Open banking facilitates secure communication between travel money suppliers and banks, allowing for streamlined bank transfers through mobile banking apps.
Avoidance of Debit or Credit Fees
By utilizing open banking, consumers can enjoy the convenience of easy ordering and payment without incurring debit or credit fees that some companies may charge.
Reduced Risk of Transfer Errors
Open banking populates transfer details automatically, reducing the risk of errors during money transfers. This ensures accurate amounts, correct bank information, and appropriate reference numbers, expediting payment reconciliation for travel money suppliers.
Enhanced Security Measures
Open banking employs secure data-sharing practices, arguably providing a higher level of security than traditional banking technology. Companies utilizing open banking are subject to strict regulations and are listed in the FCA Open Banking Directory.
Safety of Open Banking
Open banking is considered safe, with stringent controls and regulations in place to protect customer data.
Quick and Efficient Payment Processing
Open banking allows for quick reconciliation of payments, enabling travel money suppliers to promptly send the requested travel money without delays.
In summary, the adoption of open banking in travel money payments offers consumers a more secure, efficient, and error-resistant way to make transactions while potentially avoiding additional fees associated with traditional payment methods.
