by Roland Toch
November 11, 2016

Open Payment is the next big thing in the payment industry. But what is exactly behind it?


Today, merchants rely more than ever on offering customer-friendly, state-of-the-art payment solutions, at the POS, for e-commerce or for smartphones. This is where open payment concepts come into play: freely available, open-source platforms guarantee more freedom of choice and considerably reduce transaction complexity.

Open-source as a basis for open payments

Open payment platforms are open-source networks that offer transparent and freely available APIs. They can be used, distributed, improved and further developed by third parties without any restrictions. This means that anyone can actively contribute to the development of a product or service through open-source concepts by providing feedback from the very start of the development process and throughout its entire life cycle. Taking this feedback into account can support and simplify everyday work.

Github is a popular web-based source code hosting service which makes software development projects available online via its servers. Users can actively suggest ideas and supply feedback or can collaborate to improve a product or a service. This is the “Wiki” principle in action.

Open payment offers easy and state-of-the-art e-commerce while using the open source concept

How does open payment actually work?

With open payment, plug-ins, add-ons, integration examples and solutions can be made available to merchants free of charge and without restrictions. Plug-ins are software modules that enhance pre-existing software, and they can be used to create a connection between the online shop and a payment solution. Additionally, the products, services and interfaces are flexible and modular and can be combined with other interfaces and services. This ensures that merchants can count on simplicity and transparency when it comes to pricing, legal matters, communication, documentation, development and innovation.

What other advantages does open payment offer merchants?

Merchants’ integration costs are lower on account of standardised interfaces and their shops can also be made live more quickly due to the transparency and automation of the integration. In addition, they can access all other information relevant to them much more quickly and easily, such as updates and new features. The conversion rate is increased via the possibility of making market-oriented product improvements.

Customers of online shops benefit most from open payment solutions: the fast reactivity of open-source concepts creates an improved payment experience with the latest online payment solutions.

Open payment advantages at a glance


It remains to be seen how this new industry topic of open payment will develop in future. However, one thing is for sure: with its easy, reliable use, strong user-centric focus and integration flexibility, it has great potential.