VibePay CEO: PayPal Fee Increase Highlights Need for Open Banking Solutions

  • Payments
  • 10.09.2021 12:40 pm

Luke Massie, CEO of VibePay, comments on PayPal’s move to introduce new fees for payments between businesses in the UK and those in Europe, from November:

“This decision will severely impact many SMEs and sellers who have already struggled to stay afloat across the past 18 months. Margins have become increasingly tight as the middlemen in payment infrastructure have taken their cut, rather than those merchants who are really delivering for the consumer in the supply chain. This move, driven by Brexit, may be the final nail in the coffin for entrepreneurs and sellers, making their business models unsustainable due to excessive fees.

“Open Banking can offer a solution if the industry really makes a transition to utilise the technology, and various benefits as a result, on offer.  Legislative changes such as PsD2 have made this possible and companies like VibePay are doing our best to drive positive change, but there is more support needed from the banks in ensuring APIs are reliable. The payment infrastructure needs to evolve from traditional, fee-heavy rails, to emerging solutions that are low cost and faster, and enable businesses to operate within viable margins.

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