Open banking — the regulatory and technology framework that enables third-party access to bank account data and payment initiation — is reshaping how money moves in ecommerce. While still maturing in the US, open banking-powered account-to-account (A2A) payments are already mainstream in Europe and growing globally. This article explains what open banking means for merchants and when A2A payments make sense alongside traditional card processing.
What Is Open Banking?
Open banking allows licensed third parties (payment providers, financial apps) to access bank account data and initiate payments directly from a customer’s bank account — with the customer’s consent. Unlike card payments that route through a complex chain of networks and intermediaries, open banking payments go directly from the customer’s bank to the merchant’s bank, with the transaction authorized via the bank’s own authentication.
Account-to-Account Payments vs. Card Payments
| Factor | Card Payments | A2A / Open Banking |
|---|---|---|
| Processing cost | 1.5%–3%+ (interchange + fees) | Lower flat fee, no interchange |
| Settlement speed | 1–3 business days | Instant to same-day (RTP/FedNow) |
| Chargeback risk | Yes — consumer dispute rights | Minimal — bank-level authentication |
| Consumer familiarity | Universal | Growing (strong in EU, emerging in US) |
| Checkout friction | Low (saved cards, wallets) | Low when bank app is available |
When A2A Payments Make Sense
Open banking payments are particularly well-suited for high-ticket B2B transactions where the cost savings outweigh any adoption friction, subscription renewals where bank-authorized payment mandates reduce involuntary churn, and merchants with significant European customer bases where PSD2 has made open banking mature and trusted.
Open Banking in the US: FedNow and RTP
The US is developing its real-time payment infrastructure through the Federal Reserve’s FedNow service and The Clearing House’s RTP Network. As these rails mature, open banking-style payments will become more accessible to US merchants and more familiar to US consumers.
ConvesioPay and A2A Payments
ConvesioPay’s Adyen infrastructure supports open banking payment methods where available, allowing merchants to offer A2A payment options alongside standard card processing. For most WooCommerce merchants, card payments remain the primary volume driver — but having A2A as an option for high-ticket or B2B transactions can meaningfully reduce processing costs. Standard card processing through ConvesioPay is 2.9% + $0.30 per transaction with no monthly fees.
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