While the focus has been on how Open Banking helps customers better manage their finances, it certainly is not all that Open Banking has to offer. We are super thrilled to share with you all the launch of TG Pay: MENA’s first ever Open Banking payments and here is why… We have all come to see how digital payments and mobile banking are changing the banking scene in the MENA region, what was difficult to do 5 years ago is now done with a click of a button. With MENA’s online payments penetration reaching 76%, it is only expected to keep on growing. While there has been emphasis on improving customer experience, there are still gaps in the current payment flow. Today’s payment process still consists of certain gaps, some of which are the long settlement periods and high transactional fees. Therefore, as payments have become an integral part of a person’s day-to-day life and as digital services such as e-commerce continue to grow, there must be a better way for payments to flow. And…that is where Open Banking payments come into play.
So, what are Open Banking payments exactly and what does it mean for the payment’s ecosystem? Simply put, Open Banking payments allow for direct account to account payments (A2A) which eliminates complexities and allows for instant payment settlements as money travels directly from issuing bank to the acquiring bank. Hence, a faster and timely payment process with a great cost-savings opportunity can be found here – especially for merchants as they would avoid incurring costs from setting up with payment networks. Another huge advantage that Open Banking payments bring to the table is the reduced risk of fraud due to the lack of chargeback fees within payment transactions. Here’s a quick video on how Open Banking payments works
Now.. this is just a glimpse into what the future of the payments in the MENA region will look like. Still got questions for us? Feel free to reach out to us for any inquiries at firstname.lastname@example.org