Why Open Banking Is Great For One-Off Payments

Why Open Banking Is Great For One-Off Payments

One of the main advantages of Open Banking is that it simplifies the payment process, especially for one-off payments. With Open Banking, consumers can use their banking information to pay for products or services directly from their bank account. Thus, eliminating the need for third-party payment processors or credit card providers, which can be cumbersome and time-consuming.

What Is A One-Off Payment?

A one-off payment, as opposed to a recurring payment, is where a customer simply pays for goods and services once, rather than a subscription, monthly payment. Even if a company works predominantly on a subscription basis, there will often be times when they will still need to receive one-off payments. For example: 

  • Taking the initial payment before the recurring payment plan comes into action.
  • Taking payment for any additional products or services that are not part of the subscription.
  • Collecting a payment that has failed.

Therefore, the ability to be able to take one-off payments easily and smoothly is vital for the majority, if not all, businesses.

How One-Off Payments Have Evolved 

Previously, it has been more complex to collect one of the charges which could negatively impact customer satisfaction as the process wasn’t frictionless. With Open Banking and improved technological advances in the digital age, this process is now seamless.

Whilst Direct Debits are built to facilitate recurring payments, with the business driving the transaction rather than the customer having to send money, this system is not the optimum choice for one-off payments. Whilst other options are available such as credit cards and bank transfers, they pale in comparison to the possibilities Open Banking offers. 

How One-Off Payments With Open Banking Works

Open Banking involves the use of shared data which is used by regulated providers. Having access to this information directly significantly simplifies the process, making it easier and faster for customers to move their money and manage their finances. One-off payments can now be made in a matter of simple steps.

  1. The customer clicks a PayLink or scans a QR code which sends them to a link requesting a payment.
  2. The customer authorises the payment which usually only involves one click.
  3. The payment is confirmed and both the customer and the party requesting the payment are notified.

Not only is this process seamless, but it is also significantly more convenient for all parties involved whilst providing peace of mind that the customer’s data remains safe.


Credit card payments are renowned for having relatively high failure rates which can lead to costly chargebacks for the business, whilst bank transfers can be time-consuming and provide unnecessary admin for the customer. Open Banking has neither of these downfalls. The chance of chargebacks is eliminated altogether and the transfer process is simple with no need for arduous admin tasks. Additionally, only providing the Open Banking option to customers can also improve the overall customer experience as the payment process is significantly more streamlined. 

Improved Security

Open Banking also provides enhanced security features that can help protect consumers’ financial information. For example, APIs are designed to be highly secure, and they require authentication before any data can be shared. This means that consumers can be confident that their financial information is being kept safe and secure.

Through Open Banking, businesses also have no need to store customer data and therefore do not need to worry about any GDPR issues occurring. Consumers will also be happy to know the company will not have their details stored.


Another benefit of Open Banking for one-off payments is that it is highly flexible. Consumers can choose from a wide range of payment options, including direct bank transfers, mobile payments, and other digital payment methods. This means that they can select the payment option that is most convenient for them, which can save time and reduce frustration. 

In summary, Open Banking is great for one-off payments because it simplifies the payment process, provides enhanced security features, and offers flexible payment options. These benefits can make it easier for consumers to make payments quickly and securely, which can improve the overall customer experience.

Share This Post

More To Read