The industry leader in open banking, Tink, has introduced “Risk Signals,” a rules-based risk engine that reduces risk and opens up instant payment experiences throughout Europe.
Depending on the plan, bank transfers in some European markets can take up to three days to settle, and there’s a chance the money won’t end up there. Customers don’t want to have to wait to access a service, have their order confirmed, or have their account funded. Businesses are now stuck as a result. Provide a quick experience and take the chance, or wait until the money is settled and risk losing the business. With the introduction of Tink’s Risk Signals, companies are no longer forced to choose between lowering risk and expediting checkout times.
Risk Signals makes more accurate risk decisions to reduce fraud by using account, balance, and transaction data shared with valid payer consent. During checkout, these risk assessments run smoothly in the background. Risk Signals, which is based on Tink’s pan-European bank connectivity, makes payments safe, quick, and highly convertible possible—especially in markets without real-time settlements.
Tink can tailor the Risk Signals suite of risk checks to each bank and market. This comprises:
Live balances: Using real-time balance data, including overdraft, credit line, and pre-booked orders, you can confirm a user’s ability to make payments.
Past transactions: Evaluate the risk of fraud by considering both recent and past unresolved transactions.
Checks of velocity: Signal any questionable transaction activity.
One of the biggest PSPs in the world, Adyen, has already started using Tink’s Risk Signals service, which is being launched throughout Europe. The service began in Germany. For Tink users, the entire Risk Signals implementation process takes about one week on average. The customer does not need to integrate. Customers can easily be onboarded because Tink configures the product feature as a service and then activates it.
Dirk Jan Meijers, Payment Partnerships Lead Europe at Adyen commented: “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, 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.”
