Fintech Paysera continues to cultivate Romania’s booming e-commerce space with payment initiation service.
The payment initiation service created by Paysera is based on open banking technology and allows transactions to be carried out online by initiating them from an account with the buyer’s bank. By launching this service, fintech has joined a small handful of companies that currently offer this type of technology in Romania.
In 2020, Romania was named as the 50th largest e-commerce market in the world, generating a turnover of 2 billion dollars; even surpassing the Bangladesh e-commerce market. Showing a 39% increase in growth last year, the country’s digital markets are expected to grow alongside their rate of FinTech adoption.
The possibility of initiating payment directly from the buyer’s account became available for Romanian online shops when the most popular banks in Romania, including Bank Transylvania, RBC, ING Bank, and Revolution – granted access to customer accounts on the basis of open banking, and Paysera carried out the integration of banking systems.
“Financial technologies based on open banking have increased competition in Europe. For businesses and individuals, these technologies mean more choice and lower prices. One such financial innovation is payment initiationtion. It is very popular in the Baltic States where our payment initiation from the buyer’s account is used by almost 10,000 online shops – where buyers spent 315 million euros in 2020. Our data shows that payments using this method constitute more than 70% of the turnover of e-merchants in the Baltic States ”, states the CEO of Paysera LT, Vytenis Morkūnas.
The second Payment Services Directive (PSD2) adopted by the EU created the preconditions for the initiation of payment. Banks were forced to grant FinTech companies and other third parties access to their data through APIs (of course, user protection is ensured at all times).
Paysera collects online payments from more than 13,000 e-stores, enabling them to accept card payments, payment initiation from the buyer’s account, and through the Bank Link Accounting Service. Last year, shoppers from stores served by the fintech company spent 580 million euros.