Receipt capture upon payment Digital receipt capture has become
The benefits of open banking Open banking launched in 2018 but because the banks needed more time to finish building their architecture, a key part of the legislation, the Payment Services Directors 2 (PSD2), Strong Customer Authentication, was delayed until 14 March 2020. Open banking affects the way in which bank data is shared with other entities, via approved connections, and so affects most bank feeds and the applications that use these. Once it comes into force, consumers will be able to use a raft of new tools that provide services tied to their bank data. We think that this will be the year that businesses start using finance software to generate, manage and complete payments, further removing them from interactions with their bank. In addition, we also expect to see a raft of new tools that enable security checks of your finances and pre-authorisation (e.g. for anti money laundering) purely from enabling a connection into your bank data.
Application Programming Interface (API) link reduction and general API standards The last few years have seen huge improvements in software connectivity, enabling automation for businesses and individuals. This has all been enabled by software companies creating API connections into their data and processes to which other software connections and components need to connect. Currently each connection still has to be individually built and maintained, which requires time and resource. In the coming months we expect there to be a move towards a universal standard for API builds, which will ultimately speed up connections and lead to automation in this area. There is already an ISO standard for financial services API, and a standardised API for banking. We expect this to expand with a global standard for APIs, which ultimately will lead to greater integration, automation, security and functionality for consumers.
commonplace in finance systems with some businesses, such as Receipt Bank, creating solutions that streamline systems for their clients. The UK adoption of this has been strong and is generally the next step of system deployment following the implementation of a digital financial core (such as Xero). These systems still generally require some manual input, such as taking a picture, forwarding an email, or even requiring the customer to manually send the invoice across. We believe that this will change in the near future as systems integrations and automation enable digital receipt transfer to happen from simply making a payment. Imagine tapping to pay for a train ticket and this receipt is instantly available on your phone. Well, luckily you don’t need to imagine this, as Flux (www. tryflux.com) already does this via Monzo and Starling banks and it will shortly be available to Barclays customers. We are predicting that this will expand into the business sector as receipt capture systems, such as Receipt Bank, or financial systems such as Xero, look to integrate with Flux and embed their capture system into their processes.
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