Tink is targeting greater leverage in the European payments market via an upgrade of its core offering, specifically with a focus around business risk.
The company, which deals primarily in Open Banking technology and solutions, has launched Risk Signals, designed to conduct real-time risk checks during the payment process.
Reducing friction in the user experience has been detailed as the goal behind Tink’s product, with the firm noting that European transfers can often take up to three days, which can cause customer dissatisfaction.
Tink believes this means businesses have a choice between a high-risk instant payment or can wait for a payment to be settled. This is a lower risk option, but there is a danger customers may be lost.
Tom Pope, SVP of Payments and Platforms at Tink, added: “Risk Signals is an ideal fit for businesses looking to offer a secure and fast payment method especially in markets without real-time settlement – like Germany.
“With Tink’s Risk Signals, you no longer need to compromise between a fast checkout and reducing risk. Already in use by PSPs like Adyen, Risk Signals uses account, balance, and transaction data shared under valid consent by the payer to prevent fraud which simultaneously contributes to providing a brilliant experience for both merchants and consumers.”
As highlighted by Pope, Risk Signals is being rolled out first in Germany, where the firm has partnered with Adyen, one of the country’s largest payments service providers (PSPs).
To reduce risk, the company’s solution assesses three core factors – live balances; which verify a user’s ability to pay in real-time; transaction history, accessing fraud risk based on recent transactions; and velocity checks, which flag suspicious transaction activity.
In Adyen’s case, the partnership is the firm’s first major payments agreement of 2024, but closely follows an expansion of its offering via a deal with buy now, pay later (BNPL) company Klarna in December.
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.”