One of the core aims of open banking is to bring innovations to financial services. Companies have seized this opportunity and implemented a variety of system enhancements that have benefited consumers by providing greater transparency and control. Businesses also enjoy the benefits of a more unified financial ecosystem across Europe, enabling companies to introduce new services to their customers.
The global pandemic has accelerated the growth of digital in-store payments. Contactless payments have surpassed the use of cash and increased the number of bank account holders worldwide. Around two-thirds of adults around the world can now make or receive digital payments.
While most account holders use debit or credit cards to pay for goods and services, account-to-account (A2A) payments have the potential to become a more popular payment method than traditional card transactions. This payment method benefits merchants and other businesses because they can avoid card processing fees, get the money quicker, and reduce payment fraud risks. Direct account payments enable consumers to pay directly from their bank account, ensuring a seamless payment experience.
The combination of the innovation-fostering environment, powered by open banking, and the need for new payment solutions, has paved the way for an entirely new payment method.
Account-to-account payments for POS terminals
Responding to the changing consumer and business needs, kevin. has managed to bring account-to-account payments to POS terminals. This solution, the first one of its kind, has undeniable potential. Well-known venture capital firms such as Accel have recognised this opportunity and supported kevin. in developing a ground-breaking technology that benefits businesses and consumers.
How does it work?
kevin. A2A payments for POS terminals solution enables direct bank account payments in-store via POS terminals. This solution can be easily integrated with any terminal provider.
The payment flow, from the consumer’s perspective, remains the same as making a regular mobile payment:
1. A consumer downloads a merchant’s or a bank's mobile app and links their bank account within the application.
2. At the checkout, the consumer places their mobile device next to the POS terminal, and confirms the payment.
To enable this payment flow, the merchant has to:
1. Ensure their POS terminals have integrated kevin. kernel. If the kernel is not integrated, the merchant can contact their POS terminal provider or kevin. directly.
2. Integrate kevin. mobile POS NFC SDK to the business mobile application.
In-store A2A payment benefits
A2A payments offer great benefits to merchants:
1. No additional tools are required
Businesses don’t have to purchase any additional equipment to start accepting A2A payments. Companies can use their existing POS terminals and don’t have to set them up to begin accepting A2A payments.
2. Money-saving solution
Accepting direct bank account payments for merchants means bypassing card schemes. Bank card processing fees can make up a large portion of all payment costs. Eliminating card networks from the payment flow means saving money with every transaction.
3. Same great customer experience
Consumers don’t have to change their habits to pay directly from their account. All they need to do is link their bank accounts to the merchant’s mobile application and pay with their phone the same way they’re used to.
4. Quicker settlement
Another benefit is a quicker settlement. A2A payments can significantly improve company cash flow by allowing businesses to access their funds quickly. Traditionally, companies may have to wait for days or even weeks to get their money, but with the A2A POS payments solution, the money is instantly available.
Is the A2A POS solution right for my business?
If you’re wondering whether this solution is right for your business, try to answer the following questions:
- Do you have a physical store?
- Do you use POS terminals?
- Is your store located in any of the following countries: Lithuania, Latvia, Estonia, Czech Republic, France, Italy, Portugal, Spain, or the Netherlands?
- Would you like to save on transaction costs?
If you answered “yes” to one or more of these questions, get in touch, and we’ll work together to implement account-to-account payments for POS terminals at your business. Regardless of your company size, you can start enjoying the benefits of A2A payments at your physical store in no time.