Companies are increasingly turning to the use of APIs to access all types of banking services, especially since PSD2 was approved in 2018 and will provide a defined and clear framework for action. Being able to share data with third parties has been an incentive to adopt this technology, especially by companies most interested in digitizing and automating their processes as well as making them more secure.
PSD2 has been essential in facilitating the consensual exchange of information between the data owner and payment service providers, which has always been with the aim of improving them. Some of the most prominent APIs in this regard are the three available at BBVA API_Market: Accounts PSD2, Funds Confirmation PSD2 and Payments PSD2.
Accounts PSD2: all the information, at a glance
Accounts PSD2 is a tool that enables a company or service provider to obtain simplified information from one or more of a customer’s payment accounts. For the sake of simplicity, this API can be understood as a way to perform that customer’s bank x-rays.
In them we can see the list of accounts, their balances, activity (with the date, concept and amount) and the holders. This information is key when designing and delivering professional services that really adapt to end-customer data.
And there is a huge gap between what customers think they know and what the data say about them. Even if that information comes from the customer, it may be incomplete or partial.
It is not just a question of handling a customer’s financial information in order to provide a personalized service. The better the quality of the accounting data, the easier it will be to understand a company. And if Accounts PSD2 provides anything, it is quality when it comes to collecting these large volumes of information, which is often disproportionate if you intend to perform an analysis using conventional means. This API seeks to take advantage of all the possibilities offered by the European PSD2 Directive.
Companies that offer banking services to third parties need the best tools when it comes to capturing data. And there is no better tool than one that adheres to the permissions the customer gives when sharing information with their service provider.
Funds Confirmation PSD2: checking for cash in an account
Funds Confirmation PSD2 is an API that allows you to check whether there are funds in an account to be able to execute the corresponding payment. Aimed at third-party debit card issuing companies and, in turn, payment service providers, this API confirms to the service provider in real time whether there are enough funds in their customer’s direct debit account when the corresponding charge is to be made.
What is the value of this system? It runs smoothly and helps you work on a level of increased security and trust, checking for funds in your account. Once Funds Confirmation PSD2 is activated, and with the user having given the relevant permissions, the payment service providers (PSD) issuers of the debit card will be able to instantly confirm the availability of funds.
All this information allows the payment service provider to optimize the services provided and thus lengthen the Customer Lifetime Value with the card user, who in turn can faithfully report their shopping behavior.
For this verification to be feasible, several circumstances must concur: first, the account must be accessible online and, secondly, the customer must have given their prior consent, thus complying with PSD2 regulations. Finally, in order for this check to be carried out, it must also be a BBVA account that is associated with the card.
Payments PSD2: Making payments from a third-party platform
Payments PSD2 is an API that allows customers and users of a service to make payments from their platforms, so that a new payment method is added and, therefore, innovation and competitiveness is promoted. The type of transfers allowed by this system are SEPA transfers, immediate payments, Bank of Spain fund movement orders (OMFs), and international payments.
When a platform is designed to attract customers, it must also make an effort to keep them on it. It is of little use striving for acquisitions if this turns into a high turnaround on the platform. This phenomenon occurs when as many customers enter as those who unsubscribe. If attracting customers is the first step, retaining them is the next goal.
Facilitating payments without leaving a particular environment is key for the user to continue using the platform, as they will find an incentive in functionality. For example, creating a platform for buying and selling goods between individuals will improve quality if users are allowed to use their accounts through banking services.
All these APIs, as well as others included at BBVA API_Market facilitate the security of payment processes through unleashing innovation.