Monneo launches merchant distribution settlement service
By Megha Bhattacharya
Monneo, virtual IBAN and eCommerce bank account provider, announced the launch of its merchant settlement distribution service to enable acquirers to receive and distribute settlements to their merchants through the Monneo platform. The new service will help make transacting across currencies and borders easier and quicker, proving vital for acquirers operating in various verticals.
Commenting on the launch, Lilia Metodieva, Managing Director at Monneo, explains how the service is yet another example of fintech innovation is helping to solve problems brought about by traditional banks.
“This service was born out of requests from several acquirers and PSPs who are facing ongoing challenges from their traditional banks. Additionally, they also seek a more efficient and responsive solution to handle reconciliations with their merchants. The merchant settlement distribution service will allow acquirers and PSPs greater control and flexibility over how they distribute funds to merchants, removing obstacles and offering greater choice over key elements such as the various eCommerce verticals and settlement currencies.”
The service works by utilising the acquirer’s or Payment Service Provider’s (PSP) account at Monneo, in which they can receive payments from card schemes or other bank accounts they operate; the online merchants they process card transactions for are set up with IBANs on the Monneo platform. When the acquirer receives settlement funds, they can then distribute these settlements to the merchant’s IBAN accounts, in all major currencies. Once received, the merchants can transact via SEPA, SWIFT, Faster Payments, CHAPS, FX payments for their day-to-day operations. The merchant settlement distribution service can be accessed either through API and/or through Monneo’s banking platform allowing acquirers to provide distribution details and obtain historical data for reconciliation.
Metodieva elaborates that: “This new service demonstrates Monneo’s in-depth understanding of the modern eCommerce payments ecosystem and the challenges it creates for online merchants. In the wake of COVID-19, increased digital adoption has meant that more businesses than ever are looking to scale across borders, and they need partners who can support with this international ambition. Traditional banks are struggling to keep up with the pace of change, and Monneo is helping to deliver solutions that add value, making a difference to both Monneo’s acquiring partners and the mutual merchants we serve.”