The open banking launch is designed to provide an alternative to card payments and bank transfers. Open banking payments use banks’ APIs to initiate a transfer from one account to another. Merchants provide the payment data, the customer initiates the payment and authorises it via their banking app or website. Banks handle the transfer through the most appropriate payment method.
Alongside the launch, Bud and Blockchain.com have announced a pan European trial to make the new payment channel available for Blockchain’s customers. The product will allow Blockchain.com’s customers to fund crypto wallets directly from their bank accounts without sharing card details.