What is Open Banking?
Open Banking is a technology that allows banks to open up their customer data to a third party provider. This is based on the European PSD2 directive implemented in 2017. The aim of Open Banking is to allow value-added services to emerge on top of the banking services provided by banks to compete with the archaic banking system.
As a result, third-party services such as YowPay can access your account balance and transaction list without touching the funds.
To access bank accounts via the Open Banking provider, you need to grant authorisation on your account. Therefore, in YowPay, you are prompted to do so after entering your banking information.
Open Banking requires you to revalidate your account access authorization every 3 months. It can also happen that banks cancel account access authorizations, which requires a reconnection.