Open banking provide new ways to help customers share their financial data with non-bank providers. The payment initiation API enable third parties to set secure payments.
Thew new spec has been issued on the Open Banking Website for review and development by banks and third party service providers. It follows the issue in March of branch, ATM and product data APIs from the nine largest business and personal current account providers in the UK backing the project.
The payments initiation API, which will be live from January next year, will enable third parties to set up secure payments on behalf of customers and, once authorised by the customer, submit the payment for processing. The specification currently caters for the submission of a single, immediate, domestic payment from UK personal and business current accounts and is payment scheme agnostic.
Imran Gulamhuseinwala, trustee of the Open Banking implementation entity, says: “The specifications we are releasing today provide the platform for developers from banks, fintechs and other organisations to build new web and mobile applications that will deliver a safer, more personalised and easier banking experience for consumers wishing to search, select and switch financial products in a secure environment.
“We are on track with our plans to develop a world leading open banking service where consumers will be able to significantly benefit from moving, managing and making more of their money.”