European Open Banking platform Tink has unveiled a new feature, initially in Germany, which conducts real-time risk checks during the payments process.
Tink’s latest product ‘Risk Signals’ is set to roll out across Europe, with payment services provider Adyen already using the service.
The rules-based risk engine is designed to bridge the gap between consumers’ demand for instant payment experiences and businesses’ need to minimise risk.
Bank transfers in some European markets typically take up to three days to settle – and, sometimes, even with a risk that funds might not arrive at all.
According to Tink, these delayed transactions often leave businesses at a crossroads, deciding whether to provide instant payment methods that expose them to risks, or delay until the payment is settled, risking the loss of customers.
Risk Signals provides rapid assessment of transactions “in seconds”, while the payer progresses through the payment process, resulting in less disruption to the user experience.
The new feature works by using account, balance, and transaction data shared under a valid consent by the payer to make more precise risk decisions, thereby minimising fraud.
Risk Signals formulates a suite of bespoke risk checks for each bank and market based on Tink’s pan-European bank connectivity.
Among the key features of Risk Signals are live balances for real-time verification of a user’s ability to pay, transaction history to assess fraud risk, and velocity checks to mark suspicious transaction activities.
On average, Risk Signals takes just one week to fully implement for Tink customers, with no integration needed from the customer.
Dirk Jan Meijers, payment partnerships lead Europe at Adyen, said: “With Risk Signals, Tink is enhancing the Open Banking payment landscape, particularly in important markets like Germany.
“By leveraging the real-time risk analysis during payment processes, Adyen can offer a payment option that not only ensures security and reliability but also aligns perfectly with both merchants’ and shoppers’ expectations.”
Tom Pope, senior vice president of payments and platforms at Tink, called Risk Signals an “ideal fit for businesses desiring secure and quick payment methods, especially those operating in markets without real-time settlement”.
“With Tink’s Risk Signals, you no longer need to compromise between a fast checkout and reducing risk,” Pope added.