Tink, an open banking innovator, has unleashed 'Risk Signals' - a rules-based risk engine that transforms instant payment experiences across Europe while minimizing risk.

The Evolution of Instant Payments

In an era where time is the ultimate luxury, waiting days for bank transfers to settle feels archaic. Enter Tink's Risk Signals, a system that marries fast payments with financial prudence. There’s no need to choose between speed and security. According to Tink, Risk Signals ushers in a new dawn where transactions are assessed in seconds, adding minimal friction to the user experience.

In some European markets, bank transfers can take up to three days to settle. Tink’s Risk Signals means businesses no longer need to compromise between a quick checkout and reducing risk.

The Inner Workings of Risk Signals

Powered by reams of account, balance, and transaction data, Risk Signals orchestrates seamless risk checks in the background, ensuring fraud prevention without compromising user convenience. The system offers three key security checks:

• Live balances: Risk Signals verifies a user’s ability to pay with real-time balance information including overdraft, credit lines, and pre-booked orders.
• Transaction history: Risk Signals assesses fraud risk based on recent transactions, and previous non-settled payments.
• Velocity checks: Risk Signals can flag suspicious transaction activity.

Dirk Jan Meijers, Payment Partnerships Lead Europe at Adyen said, “With Risk Signals, Tink is enhancing the open banking payment landscape, particularly in important markets like Germany. By leveraging the real-time risk analysis during payment processes, Adyen can offer a payment option that not only ensures security and reliability but also aligns perfectly with both merchants' and shoppers' expectations."

Embracing Risk Signals Across Europe

Risk Signals has launched in Germany, and has already been embraced by industry giants like Adyen. With a swift implementation process averaging just one week, businesses can seamlessly integrate Risk Signals without the hassle of complex upheavals to their backend.

Tom Pope, SVP of Payments and Platforms at Tink, commented, “Risk Signals is an ideal fit for businesses looking to offer a secure and fast payment method especially in markets without real-time settlement – like Germany. With Tink’s Risk Signals, you no longer need to compromise between a fast checkout and reducing risk. Already in use by PSPs like Adyen, Risk Signals uses account, balance, and transaction data shared under valid consent by the payer to prevent fraud which simultaneously contributes to providing a brilliant experience for both merchants and consumers.”

Payments, they often go unheralded, but they drive the finance world.