What is PayLink and how does it work?
PayLink is a new suite of solutions developed by Atomic, a leader in financial connectivity solutions, that aims to create a more open banking system in the United States. The platform streamlines payment switching, making it easier for consumers to switch their primary banking relationship. In addition to providing a significantly improved consumer experience, this solution brings Atomic closer to providing a platform that will enable financial institutions to align with the Consumer Financial Protection Bureau’s (CFPB) renewed focus on fostering open banking in the United States.
PayLink works by allowing consumers to connect their merchant accounts, streaming services, and recurring bills to their financial institution’s app seamlessly updating their payment methods on file and enabling a one-stop hub for reviewing upcoming expenses. By streamlining the account-switching experience, Paylink makes it easier to switch primary relationships, aligning with the CFPB’s open banking vision.
What are the benefits of PayLink for consumers and financial institutions?
PayLink offers several benefits for both consumers and financial institutions, such as:
- Enhanced security via TrueAuth: With TrueAuth, consumers won’t have to worry about their credentials being shared with a third party, because the consumer authenticates with their merchant directly. This ensures top-tier security and privacy for user-permissioned data access.
- Seamless switching: Consumers can easily transition to new bank accounts in just one session, saving time and hassle. They can also update multiple subscriptions and recurring payments at once, minimizing the risk of missing payments or incurring fees.
- Payment management: PayLink helps consumers confidently manage subscriptions and bill payments from their new accounts. They can also view their upcoming expenses and track their spending habits from their financial institution’s app.
- Increased customer loyalty: For financial institutions, PayLink helps them attract and retain customers by offering a convenient and secure way to switch and manage payments. It also helps them increase engagement and revenue by providing more value-added services and insights to their customers.
How does PayLink align with the CFPB’s focus on open banking?
The CFPB is the federal agency responsible for protecting consumers in the financial sector. In June 2023, CFPB Director Rohit Chopra announced that the Bureau is working to accelerate the shift to open banking through a new personal data rights rule intended to break down the obstacles that consumers face when switching or accessing financial services, jumpstart competition, and protect financial privacy.
Atomic stands as a vital tool in translating this vision into a functional reality by allowing consumers to more easily switch their banking relationship. When switching becomes easier, competition grows between financial institutions leading to more advantageous solutions for the U.S. public.
Atomic also supports the CFPB’s goal of empowering consumers to exercise their personal data rights responsibly and securely. Atomic believes that consumers should be in the driver’s seat when it comes to their personal data and advocates for a system where consumers decide when, how, and with whom their data is shared. This ethos is deeply embedded in its products and services, such as PayLink.
Where can consumers and financial institutions learn more about PayLink?
PayLink is currently available for select partners and will be rolled out to more financial institutions in the coming months. Consumers and financial institutions who are interested in learning more about PayLink can visit Atomic’s website or contact its sales team. They can also read the full press release or watch a video demonstration of how PayLink works.
