Open Banking
Open Banking is a regulatory and technological framework that allows banks and financial institutions to securely share customer financial data — with the customer’s consent — with authorised third-party providers (TPPs) via open APIs (application programming interfaces). It aims to increase competition, foster innovation in financial services, and give consumers more control over how their data and money are used.
Services enabled by Open Banking include account aggregation, payment initiation, personal finance management, and faster, more secure online payments.
What it means for telemedia
For telemedia companies, Open Banking unlocks new opportunities for billing, user authentication, fraud reduction, and personalised service delivery. It enables direct account-to-account (A2A) payments without needing cards or wallets — offering an alternative to traditional DCB and card payments, particularly in Europe and increasingly across global markets.
Telemedia providers can integrate Open Banking-powered payment flows into apps, OTT platforms, or VAS portals, offering users faster checkout, lower transaction fees, and real-time payment confirmation. It also supports more sophisticated subscription billing models, dynamic pricing strategies, and loyalty program integrations based on real-time financial behaviour insights.
Additionally, Open Banking can help reduce chargebacks, improve KYC (Know Your Customer) processes, and enable smart credit scoring for freemium-to-premium upgrades.
Example in use
A mobile subscription platform integrates Open Banking APIs to offer users in the UK and EU a “Pay by Bank” option at checkout. Users authenticate directly with their banking app, complete the payment instantly, and enjoy subscription activation without entering card details.
The platform reports higher payment success rates, lower transaction costs, and improved user trust compared to traditional card-based billing.
Why it matters
Open Banking transforms how payments and financial data flow in digital commerce, offering faster, safer, and more user-controlled experiences. For telemedia companies, adopting Open Banking enables innovative billing models, improves operational efficiency, enhances compliance with data security standards, and strengthens user loyalty by offering smarter, frictionless interactions.
As Open Banking frameworks expand globally, they will become increasingly important for mobile-first monetisation strategies.
Related terms
A2A Payments, Payment Initiation Services (PIS), PSD2, API Integration, Mobile Payments, DCB Alternative, KYC, Open Finance, Digital Wallets, Smart Billing
