I N D U S T R Y O U T L O O K leaves merchants exposed to the risk of non-payment , which will likely result in costs that need to be offset by the benefits of using the payment method . As Open Banking solutions evolve , addressing these technological gaps will be critical to ensure seamless consumer payment journeys , whilst ensuring the return on investment in the payment method is economical for merchants .
I N D U S T R Y O U T L O O K leaves merchants exposed to the risk of non-payment , which will likely result in costs that need to be offset by the benefits of using the payment method . As Open Banking solutions evolve , addressing these technological gaps will be critical to ensure seamless consumer payment journeys , whilst ensuring the return on investment in the payment method is economical for merchants .
Consumer protection
Dispute resolution , as established by major card networks , will be another process for Open Banking to emulate . Both merchants and banks have today well-defined systems in place to manage chargeback and fraud protection efficiently .
The industry has yet to develop comprehensive solutions comparable to those offered by card networks . This gap is a critical barrier to adoption . Consumers need assurance that if something goes wrong – whether it ’ s a fraudulent transaction or a delivery issue – they will have access to clear , reliable paths for recourse .
Regulators have a crucial role in addressing this challenge . By enforcing minimum standards for consumer protection and encouraging investment in automated dispute systems , they can help build the trust needed for widespread adoption . However , these efforts must be balanced against the need to keep costs manageable for merchants and banks – any new process would require substantial investment from both parties . Striking the right balance will be key to ensuring both consumer confidence and commercial viability .
Bank incentivisation
Securing buy-in from banks will be critical to the success of Open Banking . Currently , banks lack financial incentives to prioritise Open Banking transactions . Unlike card payments , which generate revenue through www . intelligentfin . tech
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