Cheddar paytech company acquires Upside Saving start-up at an undisclosed price to make a move in the open banking segment with respect to technology-enabled in free payment offering.
Cheddar is a bank transfer platform and is based in London, United Kingdom. It provides one of the best payment platforms enabled with bank accounts and bridges the payment gap between small business houses and their consumers.
Founder and CEO of the company, Tariq Zaid, said the acquisition is believed to be adding value for their customers amid complementing other operations as well as services of Cheddar.
He added further that open banking opportunities will be explored with the help of Upside Saving and enhance the existing offerings. Cheddar always hopes to fulfillÂ the desires of consumers and looks to remain at the forefront with innovations in the offerings in the digital finance services segment.
Lately, calls were made to the regulators of an open banking organization in the UK to increase the pace of debuting the technology. Open Banking Implementation Entity (OBIE)'s chairperson Charlotte Crosswell, City A.M., mentioned the priority would be in simplifying the regulators.
He added more work is required in the segment to take it to the advanced level and regulators would be setting up related policies.
The Competition and Markets Authority established OBIE in 2018 to deliver security infrastructures and programming interfaces and help the developers in harnessing the technology.
Open banking is championed by FinTechs and promises to share free data in banking. It will be promoting innovation in the financial segment. It shares transaction data of credit cards and banks with third parties to make bank-to-bank payments easier.
Cheddar was founded by Tariq Zaid and Luke Ladyan in 2020. It is regulated by the FCA.
The Upside Saving platform enables connecting consumers with retail brands with respect to personalized cashback infrastructure. This will enhance the payments process of Cheddar for consumers. Its open banking product is equipped with a targeted marketing platform.
What is Open Banking
Open banking allows payment and financial services of third-party accessing of banking transactions as well as other data from the institutions through APIs. The global economy is widely evolving and open banking is believed to be playing important role in the near future. It has gained significant popularity due to its fast and secure characteristics. Consumers can easily and comfortably manage their finances with the platforms.
Open banking is regulated and equipped with an advanced level of technology. It provides better and more choices to consumers. It requires no logging into the bank to make payments.