Fintech companies Tink and Chip join forces in open banking alliance
In a groundbreaking move for the financial technology sector, Tink, a Visa solution, and Chip, the award-winning wealth app, have announced a partnership to enhance the user experience by leveraging Tink's open banking technology for seamless and secure account top-ups within the Chip app.
The partnership, noteworthy in the field of open banking and financial technology, will see Tink provide its Payment Initiation Services (PIS) to Chip users. This integration, known as Pay by Bank, allows Chip customers to add money to their savings accounts faster and more securely by initiating payments directly from their bank accounts without relying on traditional card networks.
The collaboration aims to reduce friction in the top-up process, lowering the chances of user drop-off during adding funds. It also seeks to lower costs by bypassing card processing fees since payments are initiated directly from bank accounts, thereby improving the overall user experience by facilitating real-time, authenticated payments that are faster and safer.
Ian Morrin, Head of Payments at Tink, expressed delight at Tink becoming part of Chip's success story, while Chip’s Co-Founder, Alex Latham, highlighted the benefit of Tink’s open banking solution as a fast and secure payment option. Latham also mentioned forthcoming updates to further improve the experience.
The partnership between Tink and Chip will bring more payment options to the Chip user base, with Tink's services being used by Chip users to top up their accounts. The Chip team is expected to work with Tink to promote new payment options, and the collaboration may lead to further advancements in payment options.
Ian Morrin's comments suggest that the partnership between Tink and Chip is long-term and strategic, with Morrin believing that Chip has been on a tremendous growth journey in recent years. Alex Latham, Co-Founder of Chip, has expressed excitement about the partnership with Tink, with the Chip team looking forward to promoting payment options with the Tink team.
In summary, the collaboration between Tink and Chip uses open banking-powered Payment Initiation Services to revolutionize money transfers within the Chip app by making the top-up process quicker, more reliable, and cost-efficient, thereby enhancing how users fund their savings and investment journeys. The partnership is expected to bring improvements to the money transfer process for Chip users and may lead to further advancements in payment options in the future.
This strategic partnership between Tink and Chip, significant in the realm of open banking and finance, will see Tink's technology integration with Chip's business model, providing Payment Initiation Services (PIS) to enhance the user experience by enabling secure and efficient account top-ups. The collaborative endeavor aims to streamline the top-up process, reduce user drop-offs, and lower costs by bypassing traditional card network fees, ultimately facilitating faster and safer payments for users.
