Financial news

The cryptocurrency exchange Coinmama is collaborating with the open banking platform TrueLayer for account-to-account payments.

Coinmama is engaging with TrueLayer to achieve open banking account-to-account payments within its European exchange platform.

The exchange has been at the forefront of the financial revolution ever since its 2013 inception when it allowed customers worldwide to buy bitcoin with cards.

However, traditional payment methods weren’t built to deliver efficient fiat to crypto on-ramps.

Cards and digital wallets generate costs through interchange fees, chargeback penalties and time-consuming manual tracking processes. There is also the issue of rising card fraud in Europe, which totalled €1.55billion in 2020. Card-not-present fraud accounts for 76 per cent of those cases. France, Germany and Spain all ranked in the top five for card fraud losses.

In an effort to overcome these hurdles, Coinmama has integrated TrueLayer Payments into its platform for account-to-account payments.

Customers can select the ‘instant bank transfer’ option when purchasing cryptocurrencies, authenticating their identity through biometrics.

Primarily, the integration improves the customer experience of purchasing cryptocurrency. It eliminates manual card entry and the possibility of errors.

Coinmama also safeguards itself as TrueLayer Payments are authenticated directly with the bank. This ensures compliance with strong consumer authentication (SCA) and reduces card-based fraud and chargebacks.

The UK and further European markets are due to go live over the coming months.

Instant open banking

“Our mission is to make purchasing cryptocurrencies as safe and straightforward as possible,” explains Martin Kølbæk, VP of payments at Coinmama.

“A critical part of that is providing the fastest, digitally native payments option,” he continues. “The integration of instant open banking payments across the UK and Europe with TrueLayer aligns with our vision of delivering an enhanced experience.”

Adding to this Nick Tucker, TrueLayer’s financial services head, explains that as consumer interest in cryptocurrencies continues to grow, “so does the expectation of a frictionless experience.”

“According to YouGov research,” continues Tucker, “a quarter of European investors have missed out on an investment opportunity because funds didn’t appear in their accounts quickly enough.”

“TrueLayer’s instant account-to-account payments are solving this for Coinmana, enabling the exchange to differentiate and drive customer loyalty through a more intuitive fiat on-ramp.

“We look forward to working with them and building on our collaboration across more European markets in the coming months,” he concludes.