Open Banking with Cardstream

Overview Cardstream's Open Banking acquiring service is pre-integrated into the Cardstream Gateway to provide secure and seamless payment for Merchants and their customers. This article explains this payment method's features, benefits, and how it works.

What is a payment via Open Banking? Open Banking enables secure access to financial data and payments between authorised parties. It allows businesses, banks, and Fintechs to offer innovative financial solutions while ensuring security and compliance with regulatory standards. In the UK market, Open Banking payments run on Faster Payments rails. Open Banking provides a card-like checkout experience on a bank payment, cutting out card schemes fees and chargebacks, and allowing a Merchant to easily reconcile payments and maintain control over checkout conversions.

Cardstream’s Open Banking service currently offers Sale and Refund transactions, called Single Immediate Payments (SIP). Support for Commercial Variable Recurring Payments (cVRP), the equivalent of card-on-file, has already been built and is planned for release later this year when the UK banks enable this feature. Cardstream has partnered with Mastercard to use their trusted Fintech for where the customer approves SIP transactions and initiates a cVRP mandate. Cardstream Open Banking is used via an Alternative Payment Method (APM) button within the Gateway checkout process. 

Sale Transaction Customer Payment Flow 

		1. The customer clicks the Pay by Bank button on the Hosted Form, launching the Open Banking checkout, which is powered by Mastercard’s banking technology.
		2. If on a desktop, the customer will be presented with a QR code to scan with their phone, or they can select their bank (see the next step).
		3. On a mobile device or if selected, the customer selects their preferred bank.
		4. The customer chooses the type of bank account to use for the payment.
		5. After reviewing the payment, they select Accept and go to bank, launching their banking app. They then choose the account and confirm the payment with their bank.
		6. Once the transaction is completed in their banking app or portal, they are redirected to a success screen and then back to the Merchant’s website.

Benefits of Open Banking

Open Banking offers a range of benefits, from enhanced financial transparency and security to greater consumer control and access to innovative payment solutions:

How can I enable Open Banking?

The Open Banking integration within Cardstream’s payment gateway delivers powerful solutions for Merchants and Consumers. For further assistance or technical support, please contact the Cardstream support team.

Last updated February 2025