The Fintech & Payments Power 50

The Payments Power 50 Podcast - The Future of Open Banking: Trends and Challenges

Episode Summary

In this episode of the Payments Power 50 podcast, host David Parker and guests discuss the evolution and current state of open banking. They explore the challenges and opportunities presented by open banking payments, including consumer trust, confirmation of payments, and the impact of regulations like PSD3. The conversation also delves into the future of variable recurring payments and the operational challenges faced by payment providers. Insights from industry experts highlight the importance of consumer protection and the need for standardized practices to enhance the open banking experience.

Episode Notes

Title: The Future of Open Banking: Trends and Challenges

Host: David Parker, CEO at Polymath Consulting. 

Guest: Timo Seifert, Director Product Management at Unzer. Miroslav Pekárek, CPO at Aevi. George Parks Davie, VP of product at Brite Payments.

Takeaways

• Open banking has reached a tipping point with increased user adoption.
• Consumer trust in merchants is essential for the success of open banking payments.
• Instant payments are revolutionizing the payment landscape.
• The enrolment process for open banking payments remains a significant challenge.
• Chargebacks and consumer protection are critical gaps in open banking.
• Biometric authentication could enhance security and user experience.
• Variable recurring payments present new opportunities for merchants and consumers.
• Standardization and consistency in payment practices are needed for growth.
• The future of payments is leaning towards account-to-account transactions.
• Operational challenges, such as API stability, hinder the growth of open banking.

Time Stamps

00:00 Introduction to Open Banking and Its Evolution

03:56 Current Trends and Changes in Open Banking Payments

10:54 Challenges and Opportunities in Open Banking Payments

15:49 Use Cases and Merchant Perspectives on Open Banking

20:48 Consumer Experience and Drop-off Rates in Open Banking

25:23 The Evolution of Payment Methods

27:29 Challenges in Open Banking Payments

30:59 Consumer Trust and Payment Security

34:00 The Future of Payment Technologies

36:56 Operational Challenges in Open Banking

40:21 Looking Ahead: The Next 12-18 Months in Open Banking