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What is the Open Banking transfer?

The Open Banking Transfer is the initiation of payment by transfer. This is a SEPA transfer instruction initiated by the payer (the debtor) and pre-filled with the IBAN and the reference to the recipient (the creditor). It is defined as a payment method integrated seamlessly into a platform allowing the payer to use a regulated actor such as Bridge to initiate a transfer to pay a recipient or request to be paid. The same rules, therefore, govern this payment as those of the classic transfer in terms of amount, execution time, protection, and guarantees.

The buyer/payer transmits a transfer order to their bank via an Open Banking API using this payment method. The bank will receive the transfer order and transfer the funds to the recipient.

Why integrate a payment solution into your business management software?

Reason 1: Saving time and productivity thanks to the Open Banking transfer‍

Open Banking transfer is a flexible payment method. I can use it for various situations and actors.

As business management software development, you have the opportunity to integrate this payment method into your software to cover the following use cases:

1.1 For software intended for accountants:
  • Allow accountants to manage the payment of invoices from their client companies (single and multiple transfers). Reconcile payments and follow-up very easily.

  • For the firm's payroll department, manage the number of salaries in a single transfer.

  • Request payment of the firm's invoices very easily

1.2 For software intended for businesses:
  • Pay all your invoices without having to enter the amount or the recipient manually.

  • Send payment links to customers to collect amounts due.

  • Provide easy tracking of paid and payable invoices

  • Pay employees in a few clicks without having to enter the recipient or the amount manually.

Reason 2: Simplification of customer journeys

Beyond saving time and productivity, the Open Banking transfer also makes it possible to simplify the customer journeys already in place within your business management software:

  • Easy to integrate into your management software. The course is customizable with your logo and optimized for your customers.

  • It improves the user experience because it allows your customers not to leave your management software.

  • Payment is made in a few clicks: no need to enter the amount or register the IBAN in the list of trusted beneficiaries.

  • Payments are directly integrated into your software for easy reconciliation.‍

In addition, it has the advantages of the transfer as a means of payment:

  • Payment caps are high, and expiration date constraints disappear.

  • The transaction is irrevocable once initiated (from receipt of the transfer order by the account manager) and secured with a limited risk of fraud.

  • It has a competitive price (especially for business payments), and it becomes instant.

Reason 3: Simplify payment of invoices‍

By using corporate financial management software equipped with Open Banking payment software solutions, businesses will benefit from more flexibility and time savings in their day-to-day operations. Indeed, the Open Banking transfer makes it possible to optimize the payment of invoices whether you are a client company or a supplier company:

  • For client companies, it will be possible to pay a large number of invoices in a few clicks via a suitable and error-free process.

  • For supplier companies, it will be possible to get paid, collect payments easily, and quickly reconcile flows. ‍

3.1 Equipped solution vs. unequipped solution

For a company client who has to pay all its different suppliers, the Open Banking transfer is beneficial thanks to the multiple transfers. Take the example of company A, paying its suppliers via management software that is not equipped with an Open Banking multiple transfer solution.

When paying suppliers, Company A must:

  1. Export transfer information in xls./csv format. from its management software

  2. Connect to your bank's website using your bank details

  3. Import this document on the bank's website

  4. The bank then proceeds to the transfers, therefore to the payment of the invoices.

  5. An unoptimized user experience with breaks in the journeys‍

Take the example of company B, paying its suppliers via management software equipped with an Open Banking multiple transfer solution like that of Bridge When paying invoices, company B:

  1. Selects the invoices to be paid from the management software

  2. Then access an interface where the transfer information is pre-filled: IBAN, amounts, references.

  3. Validate via a button (or modify, if necessary) the information to transmit the multiple transfer orders to the bank which makes the transfers.

  4. A completely smooth user experience for the entire journey.

With less risk of data entry errors and an ultra-simplified process, paying invoices becomes simpler and easier to manage. In other words: "I pay all my bills at once without manual processes for sending files to my bank, and I know where I am with my payments."