In Spain, a new payment system is expected to move more than 9 million dollars this year 2023. The objective of the new payment system is to offer greater speed and security in financial transactions, both nationally and internationally.. This is what he says in a press release kevin., a payments infrastructure platformwhich also states that the year 2023 is shaping up to be the moment in which A2A payments (Account to Account or payments from account to account) will take off in Spain.
The payment system kevin. offers an advanced technological platform that would allow transactions to be carried out in real time, as well as greater interoperability between the different financial service providers. In addition, the system also offers greater protection against fraud and greater transparency in operations.
This new payment system it is expected to especially benefit small and medium-sized enterprises, who will be able to carry out faster and safer transactions with their suppliers and clients. It is also expected to have a positive impact on the country’s economy by facilitating trade and investment both nationally and internationally.
Expectations
Although only 5% of the Spanish population uses them compared to 85% in the Baltic countries, these payments are becoming a very relevant factor of added value for companies, since they favor the acceleration of their growth.
from kevin. point out that, according to a PwC study, open banking will move revenues of 9.78 billion dollars in 2023 and forecast that by 2030 electronic payments will practically triple worldwide.
PayTech is the financial sector that works on the technologies that affect payment systems, and has helped more than 7,000 companies across Europe to obtain more benefits, attract a greater number of customers and facilitate their scalability.
Jennyfer Díaz, responsible for kevin. for Iberia, she explains that “A2A payments have become a very relevant factor of added value not only for companies, but also for the end customer because they represent a key element in the new beginning of financial services. As the population evolves from traditional cards and accounts to A2A payments, regulators are urging the industry to strengthen its domestic infrastructures. In fact, consumers in emerging markets are ‘skipping’ the card era and migrating directly to next-generation payments”
A2A System Features
from kevin. six stand out features of A2A payments that help companies both in their scalability and in attracting customers and improving their marginsnamely: expansion of the potential market, more efficient and faster payments, greater security, improvement of the treasury of companies, improvement of the customer experience and adaptability to changes.
First of all, expanding the potential market allows companies to offer a payment method that works worldwide, helping to reach a wider audience. In addition, they indicate from kevin., A2A payments are more efficient and faster, they ensure that “At the Baymard Institute, 12% of abandoned carts occur because the desired payment option is not offered”. This statement arises as an explanation to the need to innovate with payment systemsand for this reason they point out that we must be open to adopting new methods that are faster and more convenient for customers, such as A2A payments, which will help companies expand their business.
In this sense, from kevin. explain that “we use open banking based on APIs, which means we have the most secure connections with banks, supervised by regulators. In addition, as we are connected with the most relevant banks in each country, we have the widest coverage of banking APIs in the market and this makes it possible for companies to receive international payments unlike other companies such as Bizum that only operate in Spain.”. For example, Kevin. is compatible with the main Spanish banks such as CaixaBank, Santander and BBVA, among others
Regarding security, A2A payments offer a little more security compared to other methods since, when making a payment in any e-commerce, customers do not need to enter credit card numbers or their bank account number. , they simply have to access their bank app and approve the payment.
A2A payments also improve the treasury of companies, since when a customer pays with a credit card, it is common to wait several days for the money to be available in the company’s account, while A2A payments are immediate. . Plus, it improves the customer experience, as most consumers prefer the convenience of not having to manually enter payment information.
Finally, adaptability to changes is another advantage of A2A payments. The financial industry is constantly evolving, and A2A payments allow companies to adapt to these changes more easily. In addition, A2A payments are also compatible with other payment methods.
Associated risks
This method of payment raised by the company kevin. has the ambition to cover 85% of the payments by this 2023. In other words, they want to take the place that card payments currently occupy in Europe. They state in the press release that “Usually the cards keep a commission between 1.2% and 3% approximately on each operation. We charge a fixed price that is usually cents depending on the volume that is mediated with the company”.
Despite this, the use of This type of payment also has its risks and difficulties, for example, for a payment to be successfully processed it depends on Internet connectivity and that the payment network is working correctly.in which the user must access to approve the payment.
Here, there is a risk, as we have pointed out, cybercrime in Europe is on the rise, especially malware and phishing; in this type of transaction can also be the object of these crimessince the mobile operating systems can be infected and when accessing to approve payments, the access credentials can be extracted.
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