Small businesses often struggle with expensive payment processing fees and complex checkout systems that are mainly designed for large companies. Many smaller merchants lose part of their profits through card charges, while adding new payment methods usually requires technical skills and extra development costs.
However, new financial technology powered by open banking is helping smaller companies simplify payments and reduce costs. Reviews from businesses using Noda show that direct bank-to-bank payment solutions are becoming an attractive alternative for merchants across Europe.
How Open Banking Is Helping Small Businesses
Open banking was introduced across Europe through the PSD2 regulation, which allows secure sharing of banking data between financial providers. This regulation has made it possible for payment platforms to move money directly between bank accounts without relying on traditional card networks.
For small businesses, this means:
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Lower transaction costs
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Faster payment processing
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Reduced reliance on card payment providers
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Simpler payment options for customers
Direct pay-by-bank systems also improve cash flow because payments are usually confirmed instantly, helping businesses receive funds faster than traditional card payments.
What Noda Offers to Merchants
Noda is a digital payments platform that focuses on open banking transactions. The system connects with more than 2,000 banks across 28 countries, allowing businesses to accept direct bank transfers online and in person.
One of the biggest advantages of the platform is its lower fees. Since the system avoids card network charges, transaction fees can start from around 0.1%, which is significantly lower than many card processing services.
The company has also attracted investment from technology entrepreneur Dmitry Volkov, who supported the business during its early growth before exiting his investment in 2023.
Simple Payment Integration Without Technical Skills
One major challenge for small businesses is adding new payment tools without hiring developers. Many platforms require coding or complex setup processes. Noda focuses on removing these barriers by offering user-friendly solutions.
No-Code Payment Pages
Merchants can create fully working checkout pages within minutes. The platform provides guided tools and automated features that allow businesses to launch online payments quickly.
Instant Payment Links
Businesses can create payment links directly from their dashboard. These links can be shared through email, messaging apps, or social media, making them useful for invoices and one-time payments.
E-Commerce Plugins
Online shops using popular e-commerce platforms can connect with the payment system using ready-made plugins. This allows retailers to add bank-to-bank payment options without complex technical work.
Real Business Examples From Noda Users
Education Centre Improves Billing Efficiency
Mathnasium Glasgow South introduced QR-code payments to simplify how parents pay for tuition lessons. Before switching to pay-by-bank services, staff often spent time managing invoices and reminding families about payments.
After introducing instant payment links and QR codes, parents could pay directly using their mobile phones. The company reported fewer payment delays and less administrative work, allowing staff to focus more on education services.
Letting Agency Reduces Processing Costs
Property management company G4 Properties also adopted instant payment links for tenant deposits and rental payments. Since the business communicates with customers through phone, WhatsApp, and email, the payment link system fitted easily into its existing workflow.
The company reported faster payment confirmation and lower processing costs, which helped improve financial efficiency and customer convenience.
QR Code Payments Expand Into Offline Retail
In 2025, Noda introduced QR-based payment options for in-person businesses. This feature allows customers to scan a QR code and pay directly from their bank accounts without using cards or cash.
Small Barbershop Adopts Contactless Banking Payments
Scottish grooming business Barber Browns adopted QR payment technology to provide customers with quicker checkout options. The business highlighted how easy the system was to set up, requiring only a smartphone and access to the payment dashboard.
Food Industry Also Benefits From Faster Payments
Restaurant business Double Deli implemented QR codes to allow customers to pay instantly from their bank accounts. The company reported improved customer convenience and faster transaction speeds.
Why Pay-By-Bank Is Growing in Popularity
Industry experts believe pay-by-bank systems could play a major role in the future of digital payments. Several factors are driving adoption:
Lower Fees for Businesses
Card payment fees can reduce profit margins, especially for smaller companies. Open banking payments reduce these costs significantly.
Faster Cash Flow
Payments are often confirmed instantly, improving business cash flow and reducing waiting periods.
Improved Security
Open banking uses bank-level authentication systems, which reduces fraud risks and improves customer trust.
Better Customer Experience
Many customers prefer simple payment processes that avoid entering card details repeatedly.
Challenges That Still Exist
While open banking is expanding quickly, some challenges remain:
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Customer awareness of pay-by-bank systems is still growing
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Some regions have slower adoption rates
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Businesses may need to educate customers about new payment methods
Despite these challenges, adoption continues to increase as more businesses look for cost-effective payment solutions.
Future Outlook for Open Banking Payments
Financial analysts expect open banking to continue expanding across Europe and other global markets. Governments and regulators are encouraging innovation in financial technology to increase competition and reduce payment costs.
Platforms like Noda are expected to expand features, including automated payment tools, subscription billing options, and deeper integration with accounting software.
Conclusion
Reviews from small businesses show that open banking payment platforms are helping companies reduce costs and improve efficiency. By offering simple setup tools, lower fees, and faster payments, platforms like Noda are providing new opportunities for smaller merchants to compete in the digital economy.
As open banking continues to grow, experts believe bank-to-bank payment systems could become a standard option for both online and offline businesses worldwide.
