- Summary:
- The virtual accounts settlement solution is aimed at the e-commerce market and will also facilitate faster refunds, among other key benefits.
Token.io, an A2A payment solution provider based in the UK, has introduced virtual settlement accounts that facilitate the usage of A2A by payment providers for e-commerce. The technology will allow payment providers to receive real-time settlement notifications even as they collect and keep payments in different currencies. Also, Token.io will be able to provide immediate refunds thanks to the virtual settlement accounts.
Why virtual settlement in A2A is a game changer
Transferring funds from one bank account to another through A2A payments (also known as “Pay By Bank”) is a quick and safe option. Token.io’s goal is to make Pay by Bank the de facto standard payment mechanism across Europe and beyond. There are more than 567 million European bank accounts accessible through the company’s A2A payment connectivity, which covers more than 16 countries at an 80% penetration rate.
In the past, a payment provider’s existing treasury system needed to be manually processed or technically developed in order to process refunds of open banking payment transactions. Virtual accounts allow payment processors to instantly initiate refunds from their virtual account to a customer’s bank account, without the need for any intermediary accounts or transfers of monies.
Consumers will enjoy an even more streamlined online shopping experience when they enable real-time settlement status and quick refunds. Token.io and other third-party suppliers are not required by European law to be informed of the status of payment settlements processed by European banks. Problems arise for businesses since it is the third-party providers, not the payment solution providers or the merchants they service, who initiate Open Banking-enabled transactions.
Todd Clyde, CEO at Token.io, said: “We are seeing a once-in-a-generation upgrading of the infrastructure used by payments companies to enable global commerce.”
The new service from Token.io allows for immediate payouts and flexible frequency of transfer of funds. Furthermore, the new virtual accounts also enable a speedy time-to-market option for payment providers, as they offer flexibility in transaction reconciliation and settlement.