For freelancers, small business owners, and anyone managing payments, transaction fees can feel like an unavoidable cost of doing business. But what if there was a way to reduce—or even eliminate—those fees? Enter Open Banking, a technology that’s transforming how businesses handle payments and putting more money back in your pocket to increase profits.
In this article, we’ll break down how Open Banking works and how it can help you cut down on transaction fees, freeing up cash for what matters most.
What is Open Banking?
Open Banking allows banks to securely share financial data with regulated third-party providers. It also enables direct bank-to-bank payments, bypassing traditional payment networks like card processors.
For businesses, this means you can accept payments directly from your customer’s bank account to yours. No middleman. No card networks. Just fast, secure payments with lower fees.
Why are transaction fees so high?
Transaction fees usually come from payment processors or card networks. Every time a customer pays you via credit card, debit card, or even some digital wallets, a percentage of that payment (plus additional fees) goes to the payment provider.
For small businesses, these costs can quickly add up, eating into your profits. If you’re working with tight margins, finding ways to lower these fees can make a big difference.
How Open Banking reduces fees
Using Open Banking, payments move directly between bank accounts, cutting out the expensive intermediaries. Here’s how that translates into savings for your business:
No Card Network Fees: Card payments often incur a processing fee of 1-3%. Open Banking eliminates this, as no cards are involved.
Flat or Minimal Fees: Many Open Banking providers charge a flat fee per transaction or none at all.
Faster Access to Funds: Payments are processed in real time or within hours, so you’re not left waiting days for your money.
By integrating Open Banking into your payment process, you’ll not only save on fees but also make transactions faster and more seamless for your customers.
How to get started with Open Banking
Getting started is easier than you might think. Payment Bear integrates Open Banking technology directly into your invoicing and payment workflows. Your clients can pay their invoices straight from their bank account in just a few clicks so there’s no need for card details, and we know they’ll love how quick and secure the process feels.
Here’s what you’ll get:
Lower Costs: Cut out unnecessary fees and keep more of your hard-earned money.
Happier Clients: A fast, frictionless payment experience builds trust and encourages repeat business.
Real-Time Tracking: Stay on top of incoming payments with instant notifications.
Why Open Banking is the future of payments
As more businesses discover the benefits of Open Banking, it’s becoming clear that this isn’t just a trend—it’s the future of payments. For freelancers and small businesses, it levels the playing field, allowing you to offer payment options that are usually reserved for larger enterprises.
Start saving today
If you’re tired of high transaction fees eating into your profits, it’s time to make the switch. With Payment Bear’s Open Banking solution, you can simplify payments, save money, and focus on growing your business.
Ready to get started? Sign up for Payment Bear today and see the difference Open Banking can make.
