Today at TrueLayer, we’re excited to launch our new payments product: PayDirect. It combines one-click registration with instant payments and withdrawals. All within your app.
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For the first time, we’re bringing together the power of open banking with the UK and Europe’s fastest payment rails to provide our customers with a complete, customisable solution for:
- onboarding users in seconds, verifying account ownership directly with the bank
- instant low-risk payments into any account
- instant payouts for seamless withdrawals and refunds
- smoother reconciliation, no more mistyped references as payment details are automatically populated
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With PayDirect, businesses benefit from:
- high conversion and payment success, which can equate to millions in recovered revenue at the end of the year
- better customer experience and retention, because of instant payment and refund capabilities
- lower operational costs (accelerating AML processes and no chargeback handling)
- low fraud and chargebacks, saving 0.5% — 1% of revenues
What problems does PayDirect solve?
1. Card and wallet payments fail 15–20% of the time
Card payments have high failure rates for a number of reasons. Users need to manually input their details meaning mistakes can be made, fraud checks are often overzealous, payments are subject to spending limits and cards can expire or get cancelled when lost or stolen.
Because PayDirect payments are authenticated directly with the bank, funds are pushed from the consumer account to the merchant account, securely and without any spending limits, leading to higher success rates (c.96.5% success; c.3.5% failure).
When you look at overall conversion across the payment process, PayDirect typically converts 20% higher than cards, equating to millions or hundreds of millions in revenue a year for businesses.
2. Card-based payments are prone to chargebacks and fraud
Fraud losses for businesses on card payments continue to spiral, hitting EUR 1.55 billion in 2020. With PayDirect, payments are authenticated directly with the bank and biometrically, making fraud near impossible and saving businesses 0.5% –1% of revenues.
Strong Customer Authentication (SCA) this year will make cards safer and reduce losses, but, with many providers implementing clunky workarounds, it’s set to deliver a poorer customer experience. This, as Microsoft has found, negatively impacts conversion, leading some commentators to predict that European businesses stand to lose €57 billion in economic activity
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