Instant payments revolutionize online payments! | Finshark Webinar on payment methods

This is a full recording of our webinar “Are Direct payments really revolutionizing payments online” that was broadcasted on the 25th of August 2022.

If you want to participate live and also get the chance to ask questions in our Q&A subscribe to our newsletter or follow us on LinkedIn. Q&As are not available for non-live viewers.

3:42 User Friendliness
5:45 Settlement speed
7:34 Safety
9:02 Irreversibility
10:58 Coverage
13:17 Fees
16:26 Conclusion and Winner
20:07 Mobile first checkout
22:06 Demo
24:07 Direct payments by Finshark
24:45 Use cases

So, you’ve heard the term “Open Banking” and sure, it offers a payment solution for the future, right? But what is it actually doing, compared to the payment options already available for your business? Join us for a comparison of the most established ways of payment and the Open Banking-way of doing so; Direct payments.
In this webinar, our COO Kristian Sternros will break down the different payment options into a few different parts and compare them to each other.

USER FRIENDLINESS
It's Swish and Direct payments who in our eyes are the top performers when it comes to user- friendliness. Swish is a solution that is limited only here in Sweden and of course that creates a lot of limitations, but otherwise really perceived as a user-friendly solution. Once you have it installed many believe that it's super simple to use. With nice features, such as calculation, user favorites and the possibility to verify the recipient.

Then we have Direct payment. No need for downloads. No need for log in, just “top of mind” information and a smartphone. Then you are good to go. It's very versatile, works in a lot of different channels, pretty much on all digital channels. You can also verify the recipient and have no limitations when it comes to the amount of money you can send. Or, for instance, if you want to use a different account for different payments.

SETTLEMENT SPEED
Two top performers; Direct payments and Swish. Direct payments are already now instant in many cases, when you use these open banking rails between the banks and your provider, such as Finshark, for instance. Swish, the runner up, super simple in this case as well. Instant, working well, but only here in Sweden.

SAFETY
Two distinct winners again; Swish and Direct payments, due to some good factors that they carry with them. Both are using strong customer authentication to verify your payment. Pretty much 0 fraud, 0 chargeback and before sending the money also verify that you are sending the money to the right recipient. I think that creates a very good and positive feeling in the send. Very good features built into this technology.

IRREVERSIBILITY
Direct payments and Swish are both coming in at 5 points each. They are both irreversible and working the way you would want them to work. Direct payments are constructed in a way so that they are irreversible as decided by law and the regulatory technical standards that are a part of the European legislation PSD2.

COVERAGE
This is where cards really shine. Card is a mature solution, as it has been around for a long time. It's really working globally and that means that, as a customer, you can travel pretty much anywhere around the globe and still be able to use your credit card to pay your way forward. As a merchant, it also of course means that you can get paid from customers in all different markets.

FEES
We wanted to illustrate the main differences when it comes to fees by just giving you 2 schematic overviews of card payments versus payment initiation that is the open banking digital payments. As you can see here, when you are looking at the card payments, it's not hard to understand why they are quite pricey.
A direct payment. You can pretty much see that it's just a matter of a customer, a merchant and using the customer bank to send money to the merchant, using a provider such as Finshark to facilitate the full process.

WHO HAS GOT ON TOP?
We have a gold medalist bringing home the big trophy today and it is Direct payments.

There are many objective reasons why Direct payments are such a good payment solution. We are trying to summarize some of these in this slide as well. It's safe, very user-friendly, works on all types of digital channels, no limitations on the amounts you can pay, you can switch between different accounts, you can initiate the payments, sms, emails, apps, websites, etc. The settlement is very quick already now and with P27 it's going to be instant all over the Nordic region.
A lot of positive things both for the consumer or the cooperation that you have because it works pretty much just as good for a consumer as for a company, if you are doing B2B or B2C, it doesn't really matter. It's also good for the merchant. Finally, of course, a lot lower fees. More money left in the wallet, in the bank, for you as a merchant.

Subscribe or follow us for more future webinars!