VibePay builds on Open Banking, a new set of rules where banks have to allow their customers to share their own transaction data with third parties. Open Banking is great for us consumers - it means that we own our account information, not the banks.
How does it work?
When you want to share your account information with a third party - let’s say an app - you need give your bank permission to grant the app access to that data. This is done through an API, which allows two applications to talk to each other and integrate each other’s information.
Thanks to Open Banking, there are now several great money managing apps. They can help you understand what you’re spending your money on and take control of your finances. By explicitly agreeing to share certain transaction data from your bank account with these apps, you can get insights and see trends in your spending. Great examples of this are Yolt and Emma.
Open Banking is changing the way we pay
That’s not all Open Banking can do. With VibePay, you can pay directly from one bank account to another. It’s like a bank transfer, but without the hassle of having to exchange account numbers and sort codes. You can send money to anyone in your phone's contact list, as long as they also have a VibePay account.
When you initiate a payment through VibePay, the app will connect to your bank's API to set up the payment. You will then be redirected to your online bank to give your approval. It looks a little different depending on who you bank with, but is quick and easy and the money is instantly transferred.
Is it safe?
With Open Banking, you can share your bank account data with another company without actually having to give them your login details. The company cannot see or store your online banking details, and you have to approve each individual payment made through the app.
In fact, Open Banking is a lot safer than using your debit card online. You don’t have to worry about getting your card skimmed or stolen!