Category · Third-party role
What is a PIS provider?
A PIS provider (a payment initiation service provider) is a licensed institution that initiates open banking payments on behalf of a merchant, on the payer's instruction. This page describes the role in the payment flow, what a PIS provider does and does not do, and where viaBanking fits alongside one.
viaBanking is not a PIS provider. viaBanking is a software layer that connects merchants to licensed third-party PIS providers.
Role in the flow
What a payment initiation service provider does
A PIS provider handles the request that starts an open banking payment. The regulated step, instructing the payer's bank to initiate the payment, sits on the provider, not on the merchant and not on any software layer above it.
- 01
Accepts the initiation request from a merchant
The PIS provider exposes an API that the merchant (or a layer above the merchant) uses to submit an initiation request. The request references the payer's bank and the payment details.
- 02
Instructs the payer's bank to initiate the payment
The PIS provider handles the regulated step of instructing the payer's bank to initiate the payment. This is the step that requires the AIS and PIS license.
- 03
Waits for SCA on the payer's bank
Strong customer authentication is hosted and verified by the payer's bank; the PIS provider does not run SCA on its own domain and does not hold the payer's credentials.
- 04
Returns a confirmation to the merchant
Once the payer completes the flow, the PIS provider returns a confirmation that funds were debited from the payer's account. This is the intermediate signal on the merchant side.
Payment flow
A PIS provider in the payment flow
Every step names its actor. The merchant application is one actor among several; the PIS provider carries the regulated middle of the flow.
- 01
Payer
The payer starts a pay-by-bank payment on the merchant checkout and picks a bank.
- 02
Merchant application
The merchant application posts an initiation request to the PIS provider through a routing layer.
- 03
PIS provider
The PIS provider handles the open banking payment initiation on behalf of the merchant; it does not hold the payer's funds.
- 04
Payer's bank
Strong customer authentication is hosted and verified by the payer's account-issuing bank on that bank's domain.
- 05
Payer's bank
The bank moves the funds from the payer's account towards the merchant's C2B account issuer, on the bank's own rails.
- 06
PIS provider
The PIS provider returns a confirmation that the payer completed the flow and funds were debited from the payer's account.
- 07
Merchant application
The merchant application reads the confirmation and awaits the merchant-side credit signal from the C2B account.
Boundary
What a PIS provider does not do
The regulated role is narrow. Everything below sits with other parties in the flow.
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Not a holder of merchant funds
A PIS provider does not hold merchant funds at any point. Funds move between the payer's bank and the merchant's C2B account issuer.
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Not a guarantee of credit
A PIS provider confirms that the payer completed the flow and that funds have been debited from the payer's account. It does not by itself confirm the credit into the merchant's C2B account.
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Not an issuer of the C2B account
A PIS provider does not issue the merchant's C2B account. That account is opened at a licensed EMI or bank; the PIS provider only initiates payments toward it.
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Not a KYC or KYB service
A PIS provider does not run merchant KYC or KYB. Onboarding of the merchant remains with the account provider and, where applicable, the platform above the PIS provider.
Choosing
Choosing a PIS provider
Five dimensions that come up most often when a merchant reviews providers. Merchants often work with more than one to cover more markets.
- 01
Bank coverage per market
Every PIS provider ships a bank list. Coverage varies by country; a payer's bank may be reachable through one provider and not another.
- 02
Consent and SCA experience
Different PIS providers ship different consent screens; the payer's experience varies. This can affect drop-off in a pay-by-bank checkout.
- 03
Status semantics
PIS providers return different status shapes and different callback patterns. Consistency across providers is often the job of a layer above.
- 04
Support and operations
A PIS provider is a regulated counterparty. Operational support, incident response and SLA behaviour vary between providers.
- 05
Commercial terms
Pricing models vary: per-call, volume-tiered, or free above a turnover threshold. The right fit depends on the merchant's expected volume.
Where viaBanking fits
viaBanking is not a PIS provider
viaBanking is a software layer. The platform connects merchants to licensed third-party PIS providers and normalises the open banking payment flow across providers. Payment initiation is conducted by the licensed PIS provider; viaBanking routes the request and returns a normalised response to the merchant application.
On top of the PIS layer, the platform adds C2B account credit verification. Once the funds have moved, the platform confirms, via the account provider's API in read-only mode, that the credit has actually landed on the merchant's C2B account. The merchant releases the order on that signal, on the merchant's own decision.
The wider platform surface is covered on the open banking platform page. For the endpoint-level view, see the developers page.
FAQ
Frequently asked questions
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Is viaBanking a PIS provider?
No. viaBanking is not a PIS provider. viaBanking is a software layer that connects merchants to licensed third-party PIS providers and confirms the credit into the merchant's C2B account after the movement of funds. Payment initiation is conducted by the licensed PIS provider.
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What licence does a PIS provider hold?
A PIS provider holds a payment initiation service licence under PSD2 or an equivalent framework, granted by a national regulator. Specific licence details for each partner are shared by the partner itself; this page does not represent third-party regulatory status.
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Can a merchant use more than one PIS provider?
Yes. Merchants often work with more than one PIS provider to cover more banks and more markets. A layer above the providers can present them as one integration to the merchant application.
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Who holds the funds during a pay-by-bank payment?
The payer's bank holds the funds until they move. Once the movement completes, the funds sit in the merchant's C2B account at the licensed EMI or bank that issued it. The PIS provider does not hold the funds at any point.
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Does a PIS provider confirm the credit into the merchant's account?
A PIS provider confirms that the payer completed the flow and that funds have been debited. Whether the funds have actually landed on the merchant's C2B account is a separate signal, typically provided by the account issuer or a layer above the PIS provider.
One integration across licensed PIS providers
To pay through several PIS providers on one contract, talk to sales. For a wider read on the payment surface, see open banking solutions.
viaBanking is a software and technology provider. Regulated payment initiation and account information services are delivered by licensed partner institutions. viaBanking does not hold an AIS or PIS licence, does not execute bank payments and does not move funds.