Open Banking and Direct Payments: The New Standard in Europe

Over the past few years, the European payments market has undergone one of its most significant transformations. Thanks to the rapid development of Open Banking, payments have become faster, more secure, and more efficient for both businesses and consumers.

An increasing number of companies are adopting direct payments and Account-to-Account (A2A) technologies as a natural alternative to traditional card payments. In 2026, this trend is no longer considered an innovation—it has become the new standard for digital payments across Europe.

How Has Open Banking Transformed the Financial Ecosystem?

Open Banking is a framework that allows banks to provide secure access to selected financial services through standardized APIs, with the customer's explicit consent.

This enables licensed payment service providers to develop a new generation of financial solutions that interact directly with consumers' bank accounts.

For businesses, this means:

• More payment acceptance options
• Greater competition among payment service providers
• An improved customer experience
• Easier integration with banking systems

Open Banking is reshaping the way businesses manage payments by placing the bank account at the center of the payment journey.

The Rise of A2A Transactions as the Preferred Payment Method for Businesses

A2A (Account-to-Account) payments enable funds to be transferred directly from the customer's bank account to the merchant's bank account.

Unlike card payments, this model does not rely on card schemes or require customers to enter card details.

More businesses are choosing this payment method because it offers:

• A more direct payment process
• High security
• Easy payment confirmation
• A modern customer experience

As Europe's instant payment infrastructure continues to expand, A2A payments are steadily becoming the preferred payment model.

What Are Modern Open Banking Payments?

Open Banking payments use the secure infrastructure of banks to initiate payments directly between two bank accounts.

The customer simply:

• Selects their bank
• Authenticates using online or mobile banking
• Confirms the payment

There is no need to create a new account, enter card details, or install additional applications.

This approach combines the convenience of modern digital services with the security of the banking environment.

The Benefits of Secure Direct-to-Bank Payments for Online Merchants

An increasing number of online retailers now offer direct-to-bank payments because they provide several practical advantages.

These include:

• Secure bank authentication
• Fewer intermediaries
• Faster payment processing
• Easy transaction tracking
• A better customer experience

For merchants, this means offering a modern payment journey built around the customer's familiar banking environment.

Why Are Digital Direct Payments Replacing Traditional Bank Cards?

Consumer behavior is changing. More people use mobile banking every day and expect to pay directly from their bank account without entering card numbers.

For businesses, this creates an opportunity to offer a simpler and more intuitive payment experience.

Direct payments provide:

• Fewer checkout steps
• Secure customer authentication
• Faster purchase completion
• Increased customer trust

This is why more merchants are making direct payments a core part of their payment strategy.

Direct Payment Verification: Security and Faster Settlement

Security is built into the architecture of direct payments from the very beginning.

Every transaction goes through:

• Bank authentication
• Secure API connections
• Strong Customer Authentication (SCA)
• Encrypted communication

As a result, every direct payment verification takes place within the secure banking environment, significantly reducing the risk of fraud.

Combined with the growth of instant bank payments, this also enables much faster settlement compared to traditional payment models.

The Future of European Commerce: Real-Time Liquidity Through Open Banking

One of the biggest advantages Open Banking brings to businesses is more efficient cash flow management.

Faster payment processing enables:

• Better liquidity
• More efficient financial planning
• Faster customer service
• Easier revenue management

This is particularly valuable for businesses handling high volumes of online transactions or operating internationally.

How Can Your Business Integrate the New Payment Standard with IRIS Pay?

IRIS Pay leverages the capabilities of Open Banking and A2A technology to deliver a modern direct payment solution.

The platform offers multiple integration options tailored to different business needs, including:

• Checkout integration
• Payment links
• QR payments
• API integrations
• ERP connectivity
• Ready-made plugins for popular e-commerce platforms

IRIS Pay is connected to banks in:

• Bulgaria
• Romania
• Greece
• Croatia
• Cyprus
• Italy

It also supports:

• Revolut
• Paysera
• Ebury

This enables businesses to offer direct payments through a modern European payment infrastructure.

In 2026, Open Banking is no longer a technology of the future—it has become the new standard for digital payments. Businesses that implement Open Banking solutions today can offer more secure, more convenient, and more efficient payment experiences while optimizing internal operations and improving overall customer satisfaction.