Tech Informed

Tech has made cars as smart as our tablets and smartphones. Yet the process of buying a car is still clunky and long overdue for a makeover.

Many dealerships still wrestle with cumbersome manual bank transfers, drafts, or cheques. For those accepting cards, high processing fees and transaction limits add to the administrative hassle of splitting payments. As a result, cards are often used for deposits, but not for purchase.

But customer expectations are changing – and the bar is higher. There’s a growing call for fast and frictionless buying experiences, coupled with robust protection against evolving fraud tactics. Enter open banking, a game-changer for high-value payments. Customers can enjoy a quick, secure, and seamless way to pay directly from their bank accounts.

Prommt CEO, Donal McGuinness, discusses 5 ways open banking is revolutionising how we buy cars.

CPA Ireland | Accountancy Plus

Global losses from online payment fraud in e-commerce hit a staggering $38 billion USD in 2023. Projections indicate that total merchant losses could surpass $362 billion USD by 2028. In a world where technology continues to evolve at a rapid pace, so do the strategies of those looking to benefit from it.

Card payments are here to stay. But when it comes to higher value transactions, open banking payments have set a new standard for security by greatly reducing chargebacks, and cutting costly payment operations and card processing fees.

In the latest edition of CPA Ireland’s Accountancy Plus, Prommt’s CEO, Donal McGuinness shares his insights on how Open Banking payments can help reduce fraud and costs.

Donal McGuinness, CEO at Prommt, discusses how to effectively identify and protect oneself from fraud as SMS and phone scams grow more sophisticated.

Prommt has been featured in The Paypers’ recent Cross-Border Payments and Ecommerce Report 2023-2024. The report provides a comprehensive overview of trends, developments and future perspectives of the payments landscape. Payments Orchestration has been an emerging topic in recent years.

Prommt optimises payment success by offering merchants the flexibility to present pay by bank (open banking payments) or card options when requesting payment, or automatically set the desired payment method depending on value threshold or location of a transaction. Prommt can set automatic chase paths for failed transactions or where the cart has been abandoned and present an alternative payment method to complete the transaction – bank or card. Prommt is an acquirer agonistic payment orchestration provider. One of our key benefits is the ability to reduce fraud and provide additional protection against fraud for our merchant clients.

Business Age

We’ve all been there. Typing out that never-ending string of numbers and letters, double-checking if we’ve got it right, and wondering if there’s a better way to pay. Spoiler alert: there is.

Say goodbye to tedious manual bank transfers. Things are getting a lot easier thanks to changing payer expectations and wider adoption of open banking payments.

Merchants don’t need to send their bank details in a PDF, asking customers to set them up as a payee and then complete payment. Now, it’s all automated. From a secure, branded checkout, payers then simply authorise the payment via their mobile banking app. Simple, quick and seamless.

Irish Tech News

The adoption of Prommt’s Pay by Bank solution has more than doubled, with businesses processing tens of millions per month through open banking across the UK and Ireland, and many implementing it as their default payment method.

While card remains and will continue to remain an important payment method, there is a growing trend of processing higher-value transactions via Pay by Bank. This solution powered by Prommt eliminates the need to share IBANs and account numbers and the friction associated with that payer experience, often a key driver for late payments.

Commenting on the doubling in demand for open banking services, Donal McGuinness, CEO of Prommt said, “We’ve seamlessly integrated Card and Open Banking payments, creating a powerful synergy that not only drives profitability for our users but also elevates the overall payment experience for payers. Demand has soared for open banking solutions and its ability to empower companies to achieve faster payments with reduced costs.”

Financial IT | Innovations in FinTech

Prommt’s payments platform has seamlessly integrated both card and open banking capabilities to empower their clients to process payments dynamically according to their specific needs. By offering both Card and Pay by Bank options, Prommt’s clients are able to choose the most cost effective payment method for every transaction type. This dual card/bank offering has resulted in higher open banking adoption and a consistent increase in transaction volumes on a monthly basis. Prommt’s clients achieved over 93% payment success rates when  orchestration controls of Pay by Bank and Card are in use.

Finextra | Payments Innovation

“We’ve seamlessly integrated Card and Open Banking payments, creating a powerful synergy that not only drives profitability for our users but also elevates the overall payment experience for payers. Demand has soared for open banking solutions and its ability to empower companies to achieve faster payments with reduced costs.” writes Donal McGuinness, CEO at Prommt.

A report from Prommt demonstrates Pay by Bank adoption has more than doubled since April 2023 with strong adoption among its client base within automotive, hospitality, hardware, and luxury retail sectors. Prommt’s award winning orchestration controls are creating significant business transformation. Pay by Bank integrates seamlessly to checkouts that follow payers wherever they are – text, email, chat, web or in-app.

While card remains and will continue to remain an important payment method, there is a growing trend of processing higher-value transactions via Pay by Bank. Our solution eliminates the need to share IBANs and account numbers and the friction associated with that payer experience, often a key driver for late payments

Global Banking & Finance Review | Donal McGuinness, CEO at Prommt

“Open banking is not intended to replace traditional banking. Instead, it can be a powerful ally for legacy institutions to modernise and stay relevant in an ever-changing financial market,” writes Donal McGuinness.

This new era of financial data sharing enables small companies to compete with larger players. Favourable market dynamics are driving disruption in the remote payments market, with mobile devices, mobile banking, and regulatory support playing a major role. The digital space is now replete with the potential for data-driven decision-making, improved risk assessments, seamless payments, customer satisfaction, and retention.

Swipe, Click, Tap: The Rise of Seamless, Digital Payments

What sets Gen Z and Millennials apart is their innate comfort with technology, coupled with a strong preference for digital and mobile payment methods. They trust payment technology, are better able to spot fraud, and welcome innovation that facilitates frictionless payments such as embedded payment links and open banking.

As these generations gain financial independence, their economic clout will only increase, shaping the very future of payments. Businesses must adapt and cater to their expectations, or risk being left behind. Here are the top three traits today’s tech-savvy shoppers look for in payment experiences.