Open banking infrastructure provider Yapily has partnered with American Express to assist in delivering Amex’s payment initiation service across Europe.
The service, Pay with Bank Transfer, will use Yapily’s open API to gain bank coverage across selected European markets over the coming months. In addition, the two companies hope the alliance will enable Amex to reach new markets with its open banking product.
Stefano Vaccino, CEO and founder of Yapily, said: “American Express is a leading global provider of payments services, and we’re delighted to be merging our open banking expertise with its extensive network and trusted brand to unlock greater choice and increased benefits for businesses.
“The partnership is the first real step to bringing open banking payments to everyone across Europe and the UK. Now, a significant number of international merchants will finally be able to access, and benefit from, an open banking API.”
The announcement comes as a number of payments giants have already formed open banking partnerships. For instance, earlier this year, Visa acquired API startup Plaid for $5.3bn. And, in June, Mastercard agreed to buy fintech Finicity for $825m.
Yapily and American Express
With Yapily’s API, American Express will remain in full control of the user interface and experience. This means end users will be taken through the Pay with Bank Transfer payment journey, with no interruptions or Yapily redirects.
Furthermore, through the open banking platform, Amex’s service will use biometric authentication and instant payment APIs where available. The aim is to ensure faster payments for merchants, and enhance the speed, simplicity and security of payments for consumers.
This year, Yapily’s platform appears to have gained traction. In April, the fintech raised $13m in a Series A funding round to drive open banking adoption by organisations across Europe.
The investment was led by Lakestar, an early investor in Skype, Spotify, Airbnb, Facebook and Revolut. Existing investors, HV Holtzbrink ventures and LocalGlobe also participated in the round.
Yapily said it planned to use the funding to expand its footprint and encourage European organisations to adopt open banking.