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Merchant open banking payment rail — UK & EU

Open Banking Payments

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Extend Xace into your accounting, treasury, and analytics stack through secure AISP/PISP connections—no custom build required.

0% card feesInstant settlement95%+ bank coverageZero chargebacks

Why operators switch to open banking

The payment rail built for your bottom line

Open banking eliminates the intermediaries that add cost, delay, and risk to card acceptance. One direct bank rail, three structural advantages for your payments operation.

Instant bank-to-bank deposits

Customers select their bank, authenticate once in their banking app, and the payment arrives in your account in seconds — no card details, no card network, no card risk.

Zero card processing fees

No interchange, no scheme fees, no acquirer margin. Open banking uses a direct bank rail — your cost per deposit is a fraction of card acceptance at any volume level.

Real-time settlement, no chargebacks

Funds credit your account the moment the customer authenticates. Push payment mechanics mean chargebacks cannot occur — no disputes, no reserve requirements, no exposure.

How it works

Three layers of the open banking advantage

From the moment a customer chooses to pay by bank, to the instant the credit lands in your account — and the conversion gains that compound between the two.

Accept deposits directly from your customers’ banks

Open banking pay-ins remove the card layer entirely. Your customers authenticate with their own bank — the payment is authorised, and funds arrive in your account in seconds with no card network in between.

Bank-selector checkout

A search-first bank picker that covers 95%+ of UK and EU consumer accounts. Your customers find their bank in under five seconds; the redirect to their banking app is seamless and returns them to your product the moment they confirm.

Instant push authorisation

Payment authorisation is completed inside the customer’s own banking app — biometric or PIN — with no card entry and no 3DS step. Authorisation rates are structurally higher than card because there is no issuer risk model to navigate.

Variable recurring payments

Set up VRP mandates for customers who want seamless repeat deposits. The customer authorises once; your platform controls subsequent payment amounts and timing within the agreed mandate parameters — no re-authentication friction on each transaction.

Recurring deposits

Set up variable recurring payments with a single customer mandate

For operators accepting regular deposits — subscription fees, wallet top-ups, or scheduled transfers — Variable Recurring Payments (VRP) let customers authorise a mandate once. Your platform then controls subsequent payment amounts and timing within the agreed parameters, without re-authentication friction on each transaction. Customers retain full visibility and revocation rights via their banking app, while your operations run without manual re-authorisation cycles. VRP is part of the broader Xace connected finance infrastructure.

Multi-currency deposits

Accept open banking deposits across currencies and markets

Xace open banking supports deposits in GBP and EUR. Where your platform operates across markets, received funds can be converted at the point of settlement — customer deposits arrive in their local currency, and your account receives the converted amount without a manual FX step. The regulated provider infrastructure underneath — the AISP/PISP and consent management layer — is operated by Xace as a registered Third-Party Provider. Operators who want to understand or build on top of that provider layer can explore the regulated TTP platform.

Mobile deposit UX

The highest-converting deposit flow on mobile — by design

Card payment conversion drops on mobile: 16-digit entry, 3DS redirects, and failed authorisations from international issuers are endemic. Open banking is inherently mobile-first. The customer taps to select their bank, authenticates with Face ID or PIN inside their banking app, and returns to your product with the payment complete — the entire flow takes under 30 seconds. For platforms where the majority of deposits happen on mobile, the conversion uplift is structural, not marginal. Combine open banking deposits with Xace's batch payment capabilities for the outbound payout side of your operation.

Platform context

Accepting payments — not building provider services

Xace open banking serves two distinct groups. This page covers the merchant side: operators and platforms that want to accept instant, fee-free deposits from customers via open banking pay-ins. The product gives you a direct bank-to-bank deposit rail alongside your existing card acceptance, with zero card fees, real-time settlement, and no chargeback exposure.

If you are a regulated Third-Party Provider — authorised as an AISP, a PISP, or operating as an agent of an authorised TTP — and you are building financial services products that access bank account data or initiate payments on behalf of end users, that is the Open Banking TTPs page. The TTP platform covers the regulated provider infrastructure: PSD2 APIs, consent lifecycle management, SCA flows, and 1,500+ bank connectivity for provider-side services.

For operators, the commercial case for open banking is clear and immediate. Replace some or all of your card deposit volume with open banking and the cost, settlement, and chargeback profile of your payment operation changes structurally. Operators who route deposit volume through open banking early build a cost advantage that compounds as that volume scales — and the integration is fast enough that going live in days is typical, not exceptional.

The open banking numbers

What changes when you remove the card layer

0%

Card processing fees

Instant

Settlement to your account

95%+

UK & EU bank coverage

Zero

Chargeback exposure

Operators on open banking with Xace

Head of Payments

Head of Payments · Licensed gaming operator

“Moving our deposit volume to open banking cut our card processing cost effectively to zero and eliminated chargeback disputes entirely. Settlement is real-time, which transformed how our treasury team operates day to day.”

CTO

CTO · Fintech platform

“The integration was faster than any payment method we have added before. We went from API access to live open banking deposits in under a week. Xace handled the bank connectivity side completely.”

Product Lead

Product Lead · Gaming operator

“Our deposit conversion rate increased meaningfully after adding open banking alongside card. Customers genuinely prefer authenticating in their banking app over entering card details — particularly on mobile.”

Open banking questions

Frequently Asked Questions

Practical answers for operators evaluating open banking as a deposit and pay-in rail.

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Disclaimers & Regulatory Information

‘Xace’ and ‘Xace Europe’ are trading names of Xace Limited and Xace Malta Ltd. Xace Limited is a private limited company (number 11742963) registered in England and Wales. Xace Malta Ltd is a private limited company (C 102626) registered at Level 5, Carolina Court, Giuseppe Cali Street Malta XBX 1425.

Xace Limited is regulated by the Financial Conduct Authority, FRN 948213, under the Payment Services Regulations 2017 as an Authorised Payment Institution, providing payment accounts.

Xace Malta Ltd is licensed and regulated by the Malta Financial Services Authority to undertake the business of a payment services in terms of the Financial Institutions Act.

Xace Limited is a registered EMD agent of Modulr FS Limited, a company registered in England and Wales with company number 09897919, which is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr FS Limited. Whilst Electronic Money products are not covered by the Financial Services Compensation Scheme (FSCS) your funds will be held in one or more segregated accounts and the full value safeguarded in line with the Electronic Money Regulations 2011 – for more information please see follow this link.

Xace Limited is also a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and the full value safeguarded in line with the Financial Supervision Act (Wet op het Financieel Toezicht, Wft) – for more information please follow this link.

Xace Limited also provides other Payment Services under its own licence. These are separate and unrelated to the account and payment services you receive from Modulr FS Limited.

Your card is issued by Modulr FS Limited or Modulr Finance B.V. pursuant to their respective license by Visa Europe. Visa and the Visa brand mark are registered trademarks of Visa Europe.