Eviden has joined forces with Ordo and ByzGen to unveil a groundbreaking open banking solution designed to streamline bill payments between businesses and customers. This progressive flexi-payment platform taps into the power of open banking’s Variable Recurring Payments (VRP), enabling secure, real-time direct payments from customer bank accounts, presenting a more efficient and cost-effective alternative to traditional payment methods such as direct debit and card payments. Utility providers and similar organizations stand to benefit from a simpler, more secure method for collecting regular bill payments, thereby reducing costs, enhancing cash flow, and optimizing operational processes.
Benefits of the New Open Banking Solution
Enhanced Financial Inclusivity and Flexibility
One of the critical themes driving this collaboration is financial inclusivity and flexibility. The platform leverages AI-driven functionality to monitor customer finances, which allows for the creation of personalized payment plans tailored to individual financial circumstances, rather than imposing rigid due dates. This feature is especially advantageous for utility companies, local authorities, and social housing providers, as it fosters a compassionate approach to bill collection. The ability to create flexible payment plans means companies can significantly reduce the need for chasing failed direct debits, offering instead a system that responds to the debtor’s genuine capacity to pay.
Furthermore, the platform endows customers with the ability to make payment contributions from various sources, such as friends or family members, thereby alleviating financial pressure on more vulnerable individuals. In this way, the solution not only promotes financial inclusivity but also bolsters the social responsibility of organizations by accommodating the fluctuating financial situations of their customers. This adaptable payment system will likely become an indispensable tool for any organization aiming to harmonize customer relations with effective financial management.
Strengthened Security and Compliance with Blockchain
Incorporating ByzGen’s blockchain technology into the platform significantly enhances security, compliance, and trust among all parties involved, while also streamlining and reducing the cost of payments. Blockchain solutions support the integrity and confidentiality of financial transactions by providing an immutable and transparent ledger. This development addresses pervasive concerns over security and fraud prevention, thereby instilling greater confidence in digital transactions among businesses and their customers.
ByzGen’s blockchain augmentation ensures that sensitive customer data is protected against unauthorized access, fostering a safer transaction environment. Additionally, the platform’s resilience to cyber threats mitigates risk and decreases the potential for financial losses due to fraudulent activities. Speed and cost-effectiveness are further bolstered by this integration, as the secure environment accelerates payment processing while minimizing associated fees. Consequently, this innovation holds great promise in shaping the future landscape of digital transactions.
The Technological Advantage of VRP Adoption
Automation and Efficiency: Future-Proofing Financial Transactions
By automating account reconciliations, reducing transaction fees, and allowing for multiple payments within a month, the platform is well-aligned with the UK’s expected full-scale implementation of VRP by 2025. This anticipated widespread adoption is set to propel FinTech innovation, paving the way for a seamless transition from legacy systems to direct, flexible, and secure bank-to-bank transfers. The automation capabilities embedded within this solution promise a significant reduction in manual intervention, thus decreasing the potential for human error and enhancing overall operational efficiency.
Moreover, the reduction in transaction fees translates into substantial cost savings for businesses, allowing them to allocate resources more effectively. The flexibility in payment frequency—enabling multiple payments within a month—also grants customers the ability to manage their finances more dynamically, adapting payments to their income schedules. These combined functionalities render this payment solution superior to traditional methods, fostering a more agile and responsive financial ecosystem.
Impact on Consumers and Businesses
Eviden has teamed up with Ordo and ByzGen to introduce a pioneering open banking solution aimed at simplifying bill payments between businesses and their clients. This innovative flexi-payment platform leverages the capabilities of open banking’s Variable Recurring Payments (VRP). It facilitates secure, immediate direct payments from customers’ bank accounts, offering a more efficient and economical alternative to conventional payment methods like direct debits and credit card transactions. Utility companies and similar entities can benefit substantially from this streamlined, secure way to collect regular payments. This can lead to a reduction in costs, improved cash flow, and optimized operational processes. By integrating this advanced solution, organizations can enhance their payment collection efficiency, ensuring that funds are transferred promptly and safely. This not only reduces the administrative burden but also minimizes the risk of late or failed payments, fostering better customer relations and financial stability.
