Fintech

In recent years open banking has become associated with the digitization and transformation of the financial services sector. New regulations have been one of the major drivers, starting in Europe before quickly spreading around the world.

Open Banking has the potential to accelerate the quality, competition, and distribution of financial services for both individuals and business. On the heels of milestone acquisitions by Mastercard and Visa of Finicity and Plaid respectively, fintechs are hurrying to build financial data rails across African FIs and beyond.

Which regulatory frameworks are enjoying the most success? What are the unique challenges in establishing financial data connectivity on the continent? Who will be the next Plaid of Africa? Find out by registering for the CLA’s Global Open Banking panel on October 15, 2020.

Below is a look at the current state of open banking around the world:

Also, next month our Founder & CEO Hamed Arbabi will be joining Microsoft and Payments Canada to discuss the current state of open banking in Canada and what the future holds. Register now for the panel discussion and learn more about our open banking payments solution.

Our friends at Plaid recently published “The Fintech Effect” report after conducting a survey of Americans that looked at how financial technology has helped them get through the COVID-19 pandemic. You can view the full report here and see the results that stood out for us below:

VoPay is a proud Plaid platform partner and offers businesses the ability to make EFT payments faster, verify bank accounts and reduce NSFs. You can learn more here.

Payment speed has never been more top of mind or important than now. In a recent PayPal survey, it found that 76% of small businesses in the U.S. have reported they are struggling with cash-flow shortages and 91% said having real-time payments could help with some of that. Organizations like Payments Canada and Nacha are working with their respective payment networks to usher in real-time payments for both consumers and businesses. At VoPay we’re also committed to improving payment speed and offer several different payment services that have varying funding times. Let’s have a look:

EFT / ACH, Intelligent EFT / ACH (iQ11) and Bulk Interact e-Transfer are all available through VoPay’s single API or payments platform. Learn more here.

As the pandemic continues so does the financial and operational stress for small business owners across North America. Businesses are turning to digital payment solutions to improve cash flow and modernize their payment systems. Let’s have a closer look at how COVID-19 has spurred digital payments adoption across the entire ecosystem:

We continue to defer our setup fee for small businesses so they can digitize there online bank account payments with speed and transparency. Learn more here.

The numbers below make it clear there is still a significant opportunity to optimize the entire accounts payable process. From eliminating paper invoices to paper checks, the urgency to shift to a paperless back office has never been greater. Let’s take a look a the current state of the accounts payable:

VoPay offers several payment services that make it quick and simple to move to a 100% paperless accounts payable process. In fact, our payment solution offers real-time payments, bank account verification and full visibility into each transaction with enhanced reporting. The paperless revolution is here!

We looked the 8 most common payment methods used in Canada. Cheque and EFT payment values clearly eclipses all other payment methods by a significant margin. These numbers are mainly driven by account to account payments by businesses and present a significant opportunity for modernization. It’s important to keep in mind that these Payment Canada numbers are from 2018 so we can expect cheque payment value to continue to decrease and shift to other payment methods.

VoPay’s next generation EFT payment service will help support businesses in finding new efficiencies including improved cash flow through faster funding times, bank account verification for added security and account balance visibility to decrease NSFs. Learn more here about our enhanced EFT payment services and everything else we have to offer to make your business run better.

This month the Bank of Canada designated Interac e‑Transfer as a prominent payment system which means the payment service will now be regulated by the Bank of Canada and highlights the importance of digital payments for both consumers and businesses, particularly during the pandemic.

In 2019 Interac’s e-Transfer system recorded approximately 486 million transactions worth about $169 billion. Those numbers are expected to dramatically increase in 2020 for both consumers and businesses with the current trends we’re seeing:

E-Transfers can allow businesses to move blocks of money around at a low cost and can provide a cheaper alternative to credit cards and offer much faster funding times then EFT payments. VoPay offers bulk e-transfer for business through its developer friendly API or directly through its payment portal. Learn more here.

EFT and bulk e-Transfer payments are both ways for business to seamlessly send money to customers and manage accounts payable. We decided to put the two payment services side by side for comparison. Which one do you prefer?

Both EFT and bulk e-Transfer payments are available through our API and payment portal along with Intelligent EFT (iQ11), our industry leading open banking payments solution. Learn more here!

In a recent infographic we looked at some of the open banking gains seen around the world including an expected growth rate of 24.4% by 2026 reaching $43.1 billion in value. Lets look at North American companies and organizations who are helping move open banking forward to create a consumer friendly future for financial data that is secure and helps deliver exceptional products and services.

We’ve listed everyone below that’s included in the graphic above for your browsing convenience. Want to be included in VoPay’s next ‘Open Banking Movers & Shakers’ list? Send us an email at: press@vopay.com

Data Networks

•  Envestnet Yodlee

• Flinks

• Fiserv

• Plaid

• MX

• Inverite

• Direct ID

• M Science

KYC/AML

• Equifax

• Experian

• Transunion

• Trulioo

Lending

• Quicken Loans

• Kabbage

Spending / Savings

• Mogo

• EQ Bank

• Petal

Payment-as-a-Service

• Interac

• VoPay

• Trustly

Investing

• Betterment

• Morningstar

• Wealthica 

• Quest Trade

Accounting

• Xero

• Intuit

Policy

• FDATA North America

• Fintech Growth Syndicate

• Canadian Lenders Association

Significant pain points persist with business payments but with continued growth in open banking adoption more business then ever are realizing the benefits of embracing the technology. Open banking is projected to have continued growth well into the future. Let’s have a look at some of the numbers below in our latest infographic:

Help Shape The Future of Open Banking

VoPay is a proud FDATA North America member. Learn about membership benefits here.