Payments service provider Svea and Nordic API Gateway, Denmark’s open banking platform, signed a new partnership that is set to boost e-commerce checkout for a wide range of merchants in Finland through the latter’s platform.

The open banking platform is currently live in 21 European markets and expects to be fully rolled out with their payment initiation module across Europe during 2021.

Nordic API Gateway reportedly processes more than half a million PSD2 payments monthly for customers like OP Financial Group, Checkout Finland, Danske Bank, DNB, Lunar and more. The number the open banking firm is expected to grow tenfold by the end of the year.

When the European regulation for electronic payment services PSD2 was introduced, payment service providers started to look into the opportunities of providing new account-to-account payments to allow merchants to initiate instant payments from the customers’ bank account to the merchants’ bank account.

This enables merchants to steer clear of expensive credit card fees while simplifying the payment process and increasing security for consumers.

Svea is set to activate open banking payments in Finland by early 2021, and soon after in other markets across the Nordics and Baltics.

Commenting on the partnership, Tomas Lundqvist, Director of Strategic Partnerships & Products at Svea Finland said,

“The payment industry is developing at a high pace and we want to stay on top and ahead of these developments at Svea.

 

We’ve been looking into open banking opportunities for a while and are happy to take the next steps in partnering with Nordic API Gateway to deliver, expand and explore new opportunities in the e-commerce landscape”

Rune Mai, CEO and Co-Founder at Nordic API Gateway said,

“We’re happy to partner with yet another strong player from Finland to deliver account-to-account payments.

 

The new opportunities from getting regulated access to accounts is maturing at a high pace, and as an infrastructure provider we are super proud to be igniting this wave of cheaper, safer and simpler bank payments for all consumers and businesses in Europe.”

Featured image: (Right) Tomas Lundqvist, Director of Strategic Partnerships & Products at Svea Finland and (left) Rune Mai, CEO & Co-Founder at Nordic API Gateway