For PSPs looking to onboard merchants using open banking, Yapily is one of the strongest providers available. It was built specifically as infrastructure for financial institutions and PSPs, offers some of the best business account coverage in the UK and EU, and is already used by Adyen and Google for merchant verification at scale.
This guide explains how open banking merchant onboarding works and compares the leading providers.
Book a call to learn more about how Yapily can help your business improve your onboarding process.
What is open banking merchant onboarding?
Open banking merchant onboarding allows PSPs to verify a merchant’s bank account directly through open banking APIs.
Instead of relying on documents like bank statements, the merchant authenticates with their bank and consents to share account information. The PSP can then retrieve verified data directly from the bank.
This typically includes:
Account ownership verification
Account holder name and identity details
Account number and sort code / IBAN
Transaction history for KYB checks
This process helps PSPs automate Know Your Business (KYB) checks and reduce manual onboarding friction.
Open banking account-information and payment-initiation services are regulated activities. In the UK, relevant providers are authorised or registered by the FCA under the Payment Services Regulations 2017; equivalent requirements apply under the relevant European regulatory frameworks.
What should PSPs look for in an open banking provider for merchant onboarding?
PSPs evaluating open banking infrastructure providers should focus on several key factors.
Important criteria include:
Business account coverage across UK and European banks
Reliability of bank connectivity and uptime
Ability to verify account ownership and account holder identity
Support for KYB verification workflows
European market coverage for cross-border merchants
Payment initiation support for future Pay by Bank capabilities
Single API integration for both data access and payments
Business account coverage is particularly important. Some providers list banks as supported based on consumer account connectivity, but do not consistently support business accounts. For PSPs onboarding merchants, this can result in failed verification attempts during the onboarding flow.
Comparison of leading open banking providers for PSPs
1. Yapily
Yapily is one of the most purpose-built open banking infrastructure providers for PSPs and financial institutions running merchant onboarding at scale.
Its API connects to nearly 2,000 banks across 19 European markets, covering both consumer and business accounts.
A key differentiator is that business account connectivity is actively tested using real business accounts, rather than assumed based on consumer coverage.
For PSPs, this distinction matters. A provider that lists a bank as supported but has not tested business account connectivity may produce failed or incomplete verifications during merchant onboarding.
Yapily’s platform supports:
Account ownership verification
Account holder identity
Account details retrieval
Transaction history access
These data points can be retrieved through a single API integration and incorporated into the PSP's wider KYB process, potentially reducing reliance on manual bank-document collection where appropriate.
The same API also supports payment initiation, allowing PSPs to expand into open banking payments without implementing a second provider.
Large technology and payments companies already use Yapily for bank verification workflows.
Adyen, one of Europe’s largest fintech companies serving businesses such as eBay, Uber, and Just Eat, uses Yapily’s account information services to support merchant onboarding and account verification across European markets.
Google has also selected Yapily to support bank account verification for business customers in Europe.
2. TrueLayer1
TrueLayer positions itself as an all-in-one platform for payments, payouts, and onboarding. According to its website, TrueLayer offers "instant bank payments, payouts, and financial data" and its verification product is designed to combine account verification with a first payment in a single flow.¹ TrueLayer has strong UK coverage and is expanding across European markets, though its business account depth varies by region.
3. Tink2
Tink, owned by Visa, offers a dedicated Business Account Check product, which, according to its website, is designed to help PSPs "verify business bank accounts and onboard merchants in minutes."² Tink has good European bank connectivity and positions its data services across onboarding, checkout, and payouts.
4. Volt3
Volt positions itself around real-time global payments and account verification. Its website describes "one integration for global real-time payments" covering pay-ins, payouts, and a dedicated account ownership verification product. Volt focuses on real-time payments and account-verification capabilities across multiple markets. PSPs should assess its available merchant-onboarding data and business-account coverage against their specific requirements.
Frequently Asked Questions (FAQ)
What is open banking merchant verification?
Open banking merchant verification allows PSPs to confirm a merchant’s bank account directly through the bank using open banking APIs. Instead of uploading bank statements, the merchant authenticates with their bank and shares verified account data with the PSP.
How do PSPs use open banking during merchant onboarding?
PSPs connect to a merchant’s bank account using an open banking provider. The merchant logs into their bank and grants permission to share account information. The PSP can then verify the account holder, retrieve account details, and review transaction history to support KYB checks.
What is the difference between an AISP and a PISP?
An Account Information Service Provider (AISP) retrieves account data such as balances and transaction history with user consent. A Payment Initiation Service Provider (PISP) can initiate payments directly from a bank account. Many open banking platforms offer both services.
Why are PSPs adopting open banking for merchant onboarding?
PSPs use open banking because it reduces onboarding friction, speeds up bank account verification, and lowers fraud risk. It also allows PSPs to introduce Pay by Bank payments, which can provide a lower-cost alternative to card payments.
Sources
1 www.truelayer.com
2 www.tink.com
3 www.volt.io
As far as Yapily is aware, the information presented in this article is correct as of 12/10/2026 and has been derived from publicly available sources. Yapily has not undertaken any further investigation or qualification of any information stated in this article to verify the accuracy of information taken from public sources. The data has been sourced directly from the following sources as of 12/10/2026.