Introducing the Open Banking Terminal by fire.com
May 28, 2021
The way in which merchants accept payments and the devices used to facilitate these transactions have undergone quite the evolution over the past 70 years. Merchant acquiring technology now comes in many form factors tailored to the business needs of each merchant case. Although, over this time cards have remained the primary payment method which consumers rely on. The introduction of open banking payments unlocks the potential for a new paradigm shift away from cards and towards account based payments. Merchants are beginning to realise the benefits that come with this new payment mechanism and consumers are becoming familiar with a new payment flow.
In this blog post we’ll:
Cover a brief background on the evolution of merchant devices and consumer payment methods.
An overview of open banking payments and the benefits they can provide to merchants.
Introduce the Open Banking Terminal by Fire – transforming your mobile device into a point of sale terminal ready to accept open banking payments straight into your Fire Business Account.
A Brief History of In-Person Payments
When looking back at the evolution of in-person payments we’re going to be focus specifically on the consumer payment method – how are funds exchanged between the merchant and consumer and how quickly does the merchant receive the funds?
Evolution of consumer payment methods over time
The primary consumer payment method by and large remained unchanged until the first big shift from cash to card payments with the introduction of the Diner’s Club charge card in 1950. Since then, we’ve seen card technology go through many iterations from the conception of the card networks in the 1950’s, the introduction of the magnetic strip in the 1980’s, EMV technology in the 1990’s and mobile wallets in 2008. All leading to more secure and accessible card payments. Although incremental improvements were made over that time the primary consumer payment method largely remained the same, a card payment. The same financial players are involved: issuers, merchant acquirers, card networks and numerous intermediary service providers. Open banking payments help facilitate the next big shift in consumer payment methods from card to account-based payments.
Open Banking Payments and its Benefits to Merchants
As covered in our previous blog post, “Open Banking Payments – What needs to happen next?”, open banking payments in the EU and UK can be traced back to the introduction of the second Payment Services Directive (PSD2) and it’s associated regulatory technical standards (RTS).
With these account based payments there are a number of benefits for merchants and consumers alike:
Cost-Effective – No hardware required. Accepting payments through the Open Banking Terminal is cheaper than other ways to get paid. No monthly or recurring fees, just one low transaction fee and reduced chargebacks.
Quicker Settlement – By executing payments via Faster Payments (Sterling) or SEPA (Euro), funds settle into your Fire Business Account quickly – within 6 business hours. Reconciliation is automated.
Less Fraud – The Open Banking Terminal is one of the safest ways to collect payments. No personal credentials are needed, reducing the risk of fraud.
The Open Banking Terminal by Fire
With the introduction of the Open Banking Terminal by Fire, merchants can realise the benefits of the shift towards account based payments from within the Fire Business Mobile App. Allowing any merchant to quickly accept ad-hoc payments from their customers on the go and have collect the funds straight into their Fire Business Account within 6 business hours.
Enter the amount to be paid in the Fire Business Mobile App.
A QR code is generated in the app to be presented to the customer to scan.
The customer scans the QR code and picks their bank.
The customer consents to the payment.
The customer are redirected to their Bank’s mobile app.
The customer reviews and authorises the payment from within their Bank’s mobile app.
The customer and the business receive confirmation that the payment was authorised and will be processed.
Check out our announcement video to see the full Fire Open Payments Terminal flow in action here.
fire.com is one of the UK and Ireland’s major Open Banking providers. To get your hands on the Open Banking Terminal by Fire and start accepting Open Banking Payments today, set up a free business account and download the Fire Business Mobile App today.