Financial Liberalization: The Freedom of Payments and Related Concepts

Financial Liberalization: The Freedom of Payments and Related Concepts

Following the invention of the steam engine, rapidly evolving technology has eliminated distances between nations and people, accelerating globalization. As the world becomes increasingly interconnected—with the rise of the internet and artificial intelligence—payment methods are undergoing a rapid transformation. Innovations that simplify payments for individuals and legal entities are delivered through smart devices by authorized institutions under governmental regulations. Led by the UK and strongly supported by the European Union, the PSD2 (Payment Services Directive 2) regulations have increased the number of authorized payment institutions, offering users a wider range of options. The liberalization of payment services and their direct accessibility to users marks the beginning of a transition from traditional banking to open banking, a method increasingly supported by governments’ monetary policies.

From Traditional Payments to Open Banking

One of the most significant advancements brought into daily life by digitalization is open banking. It is a system in which third-party institutions provide services that analyze your personal financial data and offer more tailored outputs and possibilities. Provided by fintech companies, this service speeds up payments, increases options, and offers more flexibility. First discussed in the UK, the financial center of the world, open banking integrates digital innovation into the banking sector to encourage competition and equal opportunities. The directive introduced by the European Union under PSD2 is the foundation of the open banking model. Open banking offers freedom, reliability, transparency, a healthier structure, and—perhaps most importantly—ease of use, by integrating API technologies into your financial life. API (Application Programming Interface) brings together your finance-related applications, banking operations, and transactions under one umbrella using advanced interfaces. It enables you to perform all actions from a single screen without intermediaries. If you permit access to your personal data, API also allows non-bank institutions to offer you tailored financial services.

Secure and Liberated Payments

The system where all financial operations are gathered on a single screen and payments are liberalized enables financial freedom through government regulations. The digital era, offering diversity and full control, also delivers unmatched speed in payments. Compared to traditional banking, fintech companies have a more agile and innovation-driven structure, allowing them to specialize quickly in all things digital. As a result, users enjoy better service and experience greater freedom and speed when sending or receiving payments. Security, one of the digital era’s top priorities, is safeguarded in Türkiye by Law No. 6493. Data policies are created in line with the principles of PSD2 in both Türkiye and globally, ensuring personal information is securely stored in databases. Processing all these inputs through “Core” systems and AI-powered algorithms not only liberates financial transactions but also makes them more secure.

Join the Future with Free Payment Providers

As the name suggests, fintech—financial technology—unites finance and technology to deliver convenience, speed, and security to users through innovative approaches. With increasing internet and mobile device usage, transformation in the financial world has become inevitable. Fintech companies, growing in number each day, combine freedom in payments with diversity and speed in all types of financial transactions. You too can be part of this financial technology and open banking ecosystem where payments are simplified and liberated, and transactions happen faster. This way, you can leave the rigid bureaucracy of traditional banking behind and embrace a future of flexibility in payments. With Lidio, Türkiye’s largest digital payment platform, you can diversify your payments and easily manage all your cash flow from a single screen.