Payments language demystified

A payment method enabled by open banking standards (e.g., PSD2 in Europe) where a payer’s bank account is used directly to initiate a payment (rather than using a card). This method typically utilizes APIs provided by the bank to initiate a transfer, authenticate the payer, and verify the funds. For platforms and marketplaces, open banking payment initiation offers lower cost, reduced fraud risk, and improved transparency compared with card rails.