October 29, 2024
Enriching Payment Information for a Smarter Banking Experience
6 minutes
Data is the new currency. However, raw payment data only provides basic information – like the transaction date, amount, and often a vague merchant description. This lack of enriching payment information frequently leaves customers confused, while banks miss valuable opportunities to enhance the banking experience and gain deeper insights.
What is Payment Data Enrichment?
Have you ever checked your banking app after a purchase and wondered, ‘What was that charge for?’ For example, a purchase might show up in your banking app as “Cofee 6820,” but you don’t know that it was for a coffee shop near your work.
Payment data enrichment is the process of enhancing banking raw transaction data by adding details like merchant names, categories, and locations. This process takes basic payment data and makes it more meaningful, helping users track their spending, understand financial habits, and identify potential fraud. It benefits everyone involved, from the user to the bank, even the merchants.
What Raw Payment Data Looks Like
Raw payment data provides the fundamental details of a transaction, but it often lacks the context and clarity that customers need. It may show:
The amount you spent
The date and time of the purchase
The merchant’s name (usually incomplete or misspelled) or an MCC code
How you paid (credit card, debit card, mobile wallet, etc.)

Enhance your banking app experience
When you complete a payment, your banking app can offer more than a simple transaction overview. By adding rich layers of detail banks can make the customer banking experience much more meaningful. Here’s how it displays enriched data:
Merchant Name and Logo:
With Snowdrop’s transaction enrichment capabilities, the app enriches payment information by replacing confusing strings like “GromekaParisFR75008” with accurate merchant name and logo. For example, instead of the ambiguous identifier, users see “Pizzeria Vesuvio,” allowing them to easily recognise the merchant associated with their transaction.
This clarity helps customers quickly identify their purchases, leading to fewer disputes and improved satisfaction. By displaying logos alongside merchant names, the app creates a visually engaging experience that connects users with the brands they trust.
Transaction Location:
For online and in-store purchases, the app displays the exact location on a Google Map.
The integration of real-time mapping not only improves transparency but also empowers users to track their spending geographically. It fosters a deeper connection between customers and their transactions, allowing them to visualise their spending patterns and manage their budgets more effectively.
Smart Categorisation:
The app groups your purchases into categories like “Groceries” or “Travel,” making it easy for users to monitor their spending habits. By automatically grouping transactions, it simplifies financial tracking and provides users with a comprehensive overview of their expenses. This enriched payment information helps users identify spending trends over time, facilitating effective budgeting.
Merchant Contact Details:
The app provides users with quick access to essential merchant information, empowering them to easily resolve issues, inquire about products, or clarify transaction details. By presenting key data such as the merchant’s contact information, operating hours, and customer service channels, users can efficiently address any questions or concerns related to their purchases.
Eco Footprint Tracking:
Allow your users to monitor their carbon footprint and CO2 emissions associated with their purchases. By providing insights into the environmental impact of spending, this feature promotes responsible spending habits and encourages users to make more sustainable choices.
Financial institutions can offer tips for reducing emissions, such as using public transportation or supporting eco-friendly brands. By integrating eco footprint tracking with payment information, banking apps can inspire users to evaluate their spending decisions and embrace a more sustainable lifestyle.



See how Yonder, Nationwide, and Fibank utilise our transaction enrichment API to enhance their banking app experience
How Banks Can Enrich Payment Data
When the user makes a purchase, the bank or payment provider uses a Financial Transaction API to retrieve extra transaction details. This API connects to data sources in real time, fetching enriched information to turn basic transactions into comprehensive insights. This provides a detailed, easy-to-understand spending summary in your banking app, helping you track your finances more effectively.
Banks can enrich payment data by partnering with a transaction enrichment provider. These providers specialise in the complex process of refining raw transaction data, which involves several key steps:
- Cleaning: Eliminating errors and inconsistencies in the raw data, such as incorrect merchant names or missing transaction dates.
- Standardisation: Ensuring data consistency across different sources, for example, converting various data formats into a unified standard.
- Analysis: Identifying patterns and trends in the data, like recognising recurring payments.
- Extraction: Pulling relevant information from various sources, such as merchant databases for logos and location data.
- Quality Assurance: Verifying the accuracy and reliability of the enriched data to ensure it’s ready for use.

When customers can easily comprehend their transactions, their satisfaction with their bank tends to increase. Banks can utilise enriched payment information to deliver personalised recommendations and customise their services to align with individual needs. By automating data analysis, banks not only enhance efficiency but also conserve valuable time and resources.
Snowdrop’s API utilises the power of AI, machine learning, and geospatial data to deliver exceptional accuracy. Our customers have seen remarkable results: Hanseatic Bank boosted their Google rating from 4.2 to 4.6, Wirex halved their call volume, and Nationwide reduced customer inquiries by 30%. These outcomes highlight how our solution streamlines customer interactions, reduces support costs, and enhances overall satisfaction.
Prioritising Customer Data Privacy
Data privacy is critical when enriching payment information. The process of enrichment involves the secure transfer and processing of transactional data, with strict adherence to privacy regulations such as GDPR and other global standards. Sensitive data such as user personal identifying information (PII) is not exposed during the enrichment process. Only relevant transactional metadata – such as mcc code, country code, currency code, etc. – is processed to ensure the transaction record remains informative yet secure.
Head of Digital Marketing
Fintech-focused digital marketer with a passion for travel, hiking, and history. Leading digital strategy and social media for a tech company. Always exploring the latest industry trends.