TrueLayer’s Payments API lets companies accept payments through Open Banking

Open Banking and PSD2 — groundbreaking regulation from the U.K. and European Union, respectively — set out to fix what politicians and civil servants perceived as a malfunctioning financial services market, evidenced most prominently by the banking crisis in 2008. It is also closely linked to the EU’s privacy directive GDPR, which aims to ensure citizens are given better access and use of their own personal data.

Central to Open Banking is a requirement that banks open up the data they hold and offer an API to let customers optionally share financial information with third-party providers. The idea, amongst other more innovate use cases, is to make it easier to shop around for financial services or to switch banks entirely.

In addition, a second aspect of Open Banking, which arguably targets the Visa-Mastercard duopoly, stipulates that banks offer an API to let customers authorise payments directly from their bank account as an alternative to other types of payments, such as card payments or manual bank transfers.

Enter TrueLayer, the London startup that’s built a developer platform to make it easy for fintech and other adjacent companies, such as retailers, to access bank APIs and in turn ride the Open Banking and PSD2 gravy train. Today, the young company is launching a beta of its own Op