Five facts about Adyen’s new cashless payment alternative

Dutch payments platform Adyen has launched a new cashless payment alternative which is set to utilise APIs in order to let third parties deal with payments on behalf of the consumer.

Myles Dawson, UK MD, Adyen, stated: “Bank transfers between consumers and merchants are already extremely popular in mainland Europe because they offer greater fraud protection without adding friction to the payment process.

“We are excited to be the first payments provider to offer a fully-compliant, direct payment solution in the UK and it has been great to work with the Open Banking Implementation Entity to bring these benefits to consumers and merchants.”

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Here are five things you need to know about Adyen’s new offering:

1. The service takes advantage of open banking regulations: the EU’s PSD2 requirements for APIs mean that Adyen can now work with the largest account providers in the UK – consumers and their banks can work directly together in this way, and the regulations open up the industry for more collaboration.

2. Improving efficiency is a key feature, with Adyen stating that the service will reduce processing costs and guarantee the timing of payments.

3. Fraud can be avoided since consumers authenticate transactions directly with their banks.

4. The service has already piqued the interest of a major airline, with Dutch airline KLM signing up as the first major brand to use the solution.

5. This could be set to spread to other major brands: existing customers of Adyen’s other services include the likes of Uber, Microsoft, Booking.com, eBay and Spotify.