The Nilson Report
Instant Payments in Greece
Paybybank, an online payment service, started as a person-to-person money transfer business in 2013 and has since evolved into an ecommerce payment acceptance mark. It was developed by WorldBridge, a Western Union money transfer agent in Greece. Western Union holds a 25% stake in WorldBridge, which owns a payment institution license from Greece’s central bank.
Currently, more than 50% of online sales in Greece require cash payment upon delivery of goods. Merchants typically receive their money from a delivery service a few days after consumers receive their goods. By comparison, Paybybank credits merchants within seconds of consumers initiating an online payment. Merchants integrate with WorldBridge through an application programming interface.
Consumers do not need to register to use Paybybank, which can be reached by more than 95% of bank account holders in Greece. When they select Paybybank at checkout, the WorldBridge system generates a 13-digit reference number, which is displayed on the checkout page. Consumers then log into their online bank account. Their bank verifies that the Paybybank reference number and the amount of the transaction are correct before approving the transaction with WorldBridge, which notifies the merchant to ship the goods.
The European Payments Council is expected to release a plan before year-end for Single Euro Payments Area (SEPA) Instant Credit Transfers (SCT Inst) to take effect by November 2017. Once SCT Inst regulations are in place, Paybybank plans to offer its ecommerce service outside Greece.
Posted with permission from The Nilson Report, Caprinteria, California.
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