What is open banking and how can it help my hospitality or retail business
As a hospitality or retail owner, you’re probably always on the lookout for ways to streamline your service and increase revenue. One technology that has been making waves recently is Open Banking. So what is Open Banking and how exactly can it help you and your business?
Firstly, let’s take a closer look at how Open Banking works.
Simply put, Open Banking is a type of payment processing, powered by FCA-regulated companies, allowing them to handle financial transactions faster, more securely and bypassing all the costly middlemen.
These FCA-regulated companies can interact with banking data in real-time, which has been considered a more secure option as payments can be made directly without sharing account credentials, so no more costly Visa and Master Card fees!
Open banking also forces large banks to become more competitive with smaller financial institutions such as Fintech start-ups resulting in better technology, customer service, and lower costs for customers and merchants. In fact, Open Banking is already being used by over 6.5 million UK users and every open banking provider must be regulated. For example, Yoello is Regulated and Authorised by the FCA (Financial Conduct Authority).
So, how can open banking benefit hospitality and retail venue owners? Here are a few key ways:
- Streamlined payments: With open banking, it's possible to streamline payments and reduce the need for manual data entry. This means that customers can pay quickly and easily using their preferred payment method, and you can receive funds more quickly and securely.
At Yoello we use Open Banking technology called YPay to streamline payments for hospitality and retail businesses by providing free transactions, instant payment and no chargebacks.
- Improved financial management: By accessing real-time financial data, you can gain insights into your cash flow, expenses, and revenue. This can help you make more informed decisions about how to allocate resources and optimise your business operations.
- Personalised customer experiences: With open banking, you can offer personalised experiences to your customers based on their financial data. For example, you might be able to offer discounts or rewards to customers who frequently visit your venue or who have a history of high-value purchases.
- Enhanced security: Open banking is designed to be highly secure, with advanced encryption and authentication measures in place to protect your financial data. This can give you and your customers peace of mind knowing that their sensitive information is safe.
- Access to new services: By integrating open banking into your operations, you can access a range of new services and tools that can help you streamline your business and boost your revenue. For example, you might be able to access real-time financial data analytics or integrate with other business tools such as inventory management systems.
In conclusion, open banking is a powerful technology that can help hospitality and retail venue owners streamline their operations, improve financial management, and offer personalised experiences to their customers. By taking advantage of this technology, you can gain a competitive edge in today's fast-paced business environment and help position your hospitality or retail business for long-term success.
How does Yoello use open banking to help hospitality and retail owners?
Here at Yoello, we help businesses save thousands on transaction fees when they switch to YPay as their primary payment method. Merchants can receive their money instantly for card transactions and avoid transaction fees altogether! Payments are also secure and significantly cheaper than card-based transactions. If you wish to learn more about how YPay can help your business click here.