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  • Writer's picturePooja Yadav

How Open Banking APIs Revolutionize Cross-Border Payments

Updated: Jan 22

The era of cumbersome, opaque cross-border payments is fading, replaced by a seamless, digitized future powered by open banking APIs. 

This blog delves into how these revolutionary connections are redefining the financial landscape, offering your banks unparalleled growth and customer satisfaction.

Imagine a world where:

  • Sending money across borders feels as effortless as paying a friend online. Open banking APIs enable direct account-to-account transfers, bypassing intermediary banks and their hefty fees. Imagine faster settlements, happier customers, and a competitive edge for your bank.

  • Innovation explodes beyond bank walls. Open APIs invite a vibrant ecosystem of fintech players to collaborate. They bring fresh ideas, specialized expertise, and agile solutions to your digital banking platform, enriching your offerings and catering to diverse customer needs.

  • Compliance becomes a breeze. Open APIs seamlessly integrate with your existing KYC/AML infrastructure, automating checks and streamlining onboarding processes. Say goodbye to manual paperwork and regulatory headaches!


Here's how open banking APIs make this futuristic vision a reality:

  • Data transparency unleashed: APIs securely provide access to financial data with user consent, allowing fintech apps to personalize payment experiences, suggest optimal currency conversions, and offer data-driven financial advice.

  • Frictionless payments: Initiate cross-border payments directly from within your bank's app. No more redirects, no more confusing interfaces. A clean, familiar experience keeps customers engaged and loyal.

  • Competition breeds excellence: Open APIs foster a thriving marketplace where fintechs compete to provide the best cross-border solutions. This competitive landscape constantly pushes boundaries, driving down costs and delivering cutting-edge functionalities for your customers.


Benefits for banks

  • Enhanced customer experience: Offer faster, cheaper, and more convenient cross-border payments, differentiating your bank in a crowded market.

  • Increased revenue streams: Partner with innovative fintechs to expand your service portfolio and tap into new market segments.

  • Operational efficiency: Automate manual processes and reduce compliance burdens, freeing up resources for strategic initiatives.

  • Brand reputation: Embrace open banking as a leader in financial innovation, attracting tech-savvy millennials and future-proofing your bank.


Real-World Examples of Open Banking APIs in Action

1. Lloyds Bank and TransferWise: Lloyds Bank partnered with TransferWise, a leading fintech company, to integrate its cross-border payment services directly into its mobile app. This allows Lloyds customers to send money internationally directly from their accounts, benefiting from TransferWise's competitive rates and fast settlement times.

2. Klarna and Open Banking Payments: Klarna, a popular buy-now-pay-later (BNPL) provider, utilized open banking APIs to launch its "Pay Now" feature in the UK. This allows customers to make instant bank transfers at checkout during online purchases, eliminating the need for credit cards and offering a seamless checkout experience.

3. N26 and Wise (formerly TransferWise): N26, a digital bank in Europe, collaborated with Wise to offer its customers cost-effective cross-border transfers within the N26 app. This integration leverages open APIs to connect directly to Wise's network of local bank accounts, reducing fees and speeding up settlement times.

4. DBS Bank and RippleNet: DBS Bank, a leading financial institution in Singapore, partnered with RippleNet, a blockchain-based payment network, to streamline cross-border payments for its corporate clients. RippleNet utilizes open APIs to facilitate real-time payments with lower fees and increased transparency, significantly improving the efficiency of international transactions for DBS's business customers.

5. Standard Chartered and Finastra: Standard Chartered Bank partnered with Finastra, a financial technology provider, to develop a cross-border payments platform based on open APIs. This platform allows third-party service providers to integrate their solutions, fostering innovation and offering Standard Chartered's customers a wider range of payment options and functionalities.

These examples showcase how open banking APIs are revolutionizing cross-border payments by:

  • Lowering costs and fees: Eliminating intermediary banks and leveraging fintech expertise often leads to more competitive rates for customers.

  • Speeding up transactions: Real-time settlement through direct account-to-account transfers significantly reduces delays compared to traditional methods.

  • Enhancing user experience: Integrating cross-border payments within existing bank apps creates a seamless and familiar experience for customers.

  • Boosting innovation: Open APIs encourage collaboration with fintechs, fostering new solutions and tailoring offerings to diverse customer needs.


The future of payments is collaborative, open, and borderless. Embrace open banking APIs and empower your bank to be at the forefront of this revolution. Partner with agile fintechs, leverage their specialized expertise, and unlock a world of possibilities for your customers and your business.

Remember, the choice is yours. Will you build walls and cling to outdated systems, or will you tear down barriers and embrace the boundless potential of open banking? The future of cross-border payments awaits, and the key lies in your hands.

Ready to bridge borders and redefine cross-border payments?

Join forces with your company and leverage our fintech expertise to build the future of cross-border payments together. Schedule a discovery call today.

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