The Restauranteur's Guide to Open Banking Payments
Open banking is energising the payment solutions space and creating shifts across the globe. The UK is at the forefront of this change, using peer to peer access systems to usurp the traditional banking model.
The result is more control in the hands of data owners, and less manipulation from big banks who have dominated the game for so long. Using third party applications, open banking makes the payment process quicker, safer and more direct, so that smaller businesses can operate their online payments with ease and confidence.
Yoello is powering many of these businesses, so that they can make their mark on the world in a sustainable and financially safe way. Our YPay solution is changing the way hospitality venues make payments, allowing small businesses to harness the power of open banking for themselves.
With ever-changing consumer expectations, online payments are now becoming an essential part of running a business, so there’s no better time to brush up your knowledge on online payment systems! To help you out, we’re unpacking the current trends in open banking and online payments, for the restaurateur of tomorrow.
A quick guide to open banking
Let’s start at the beginning. What even is open banking?
There is so much we could say on the topic, but the basics are that open banking allows individual businesses to authorise and authenticate payment on behalf of a bank. This saves both clients and their customers time and money, and means that there is less interference from big banks.
By utilising APIs, clients can access technology outside of their organisation to process payments in a speedier and safer manner. A.k.a - they can source a customer's financial data independently.
The recent open banking legislation (PSD2) allows businesses to cut out the middlemen, providing a central payment platform to make transactions more affordable and bring merchants and customers closer together.
YPay is a form of Open Banking tech, powered by Yoello, which helps bring restaurateurs, bar owners and hospitality venues up to speed with modern payment solutions.
The benefits of open banking
There are so many benefits of open banking, for both the customer and the venue owner. Some of these include:
High security
Payments are authorised directly through banking apps built with high levels of security.
Better use of data
With open banking, building an accurate data profile of a consumer is made a lot easier.
Reduced payment costs
Payment costs are significantly lower for merchants with open banking.
Less admin
With more control over the entire process, venues can cut the admin of interacting with banks.
Mobile payment options
Open banking lends itself to mobile payments, powering convenient transactions.
More control over the process
With open banking, venues have more control over the entire process.
Instantaneous payments
No more delays in taking payment, the transfer of funds will happen instantly.
Why is open banking so popular?
The world of digital payments accelerated before our eyes particularly during Covid-19, when nearly all payments had to be taken online.
Since then, we’ve seen a huge shift away from cash and card, and over to mobile first. And it’s pretty easy to see why. Our mobiles are glued to our hands almost 24/7, and it’s so easy for us to just take a phone out with us and pay via face ID or code.
With so many transactions taking place online, there had to be a better system than interacting with a card provider everytime you wanted to process a transaction. For business owners, this process was clunky and expensive. And for their customers, it meant less data security and often a delayed transfer of funds.
Instead of funds being deposited from the customer’s bank directly to the business, it would go through a stringent process via their bank. With open banking, this middle man is cut off completely, and the funds are deposited directly to the seller.
This saves money and time for everyone involved, and disrupts an industry that has been dominated by major banks for so long.
Over 5 million people in the UK trust and use open banking online already, and this is only increasing day by day.
So, how can restaurateurs get involved?
If you’re running a hospitality business, there’s no better time to get involved in open banking to make payments quicker and more convenient.
At present, Yoello is the only order & payment tech provider to offer open banking to brick-and-mortar hospitality businesses, and their open banking system - YPay - is a world first.
YPay offers a better guest experience in venues, with no need to punch in a bank card. This allows users to make use of mobile payments, while the venue is able to harness all the benefits of open banking.
Convenient? Yes. Time saving? Yes. Financially smart? Definitely.
You’ll make saving instantly with YPay
So many hospitality venues are opting for YPay as a way to save on transaction fees and reduce admin.
YPay can save merchants £1000s on transaction fees, compared to the standard online payment providers (Visa and Mastercard, we’re looking at you). By removing the need to interact with big payment companies, YPay allows transactions to be significantly cheaper, as well as instant and more secure.
YPay can be used as a stand-alone service against your menu or payment system, or integrated with other Yoello products like Order & Pay, Pay at Table, Quick Pick Up and Delivery.
Start using open banking now
With an entire ecosystem available, Yoello can power your business and support your digital evolution.
The best bit? We have a limited-time offer running, giving you 12 months of free transactions through YPay when you sign up now.
Plus, if you’re after more advice on open banking, we have a specialist support team on hand to guide you. Simply register your details to explore the next steps.
