Why Pay by Bank will give your business an advantage

Pay by Bank is an online payment method, also known as an “account-to-account payment method.” 

Powered by open banking, shoppers pay directly from their bank account (via mobile or the web) rather than charging a debit or credit card. 

They simply log in with their unique bank credentials, replacing the need for manual card entry. 

Is Pay by Bank safe? 

Yes, Pay by Bank is a secure way to make payments.

With Adyen’s Pay by Bank solution, accounts are verified and authenticated in real time to help minimise fraud.

When a shopper selects to pay with Pay by Bank: 

1. The shopper will be redirected to an open banking provider, like Tink, in one of two ways:

   • Immediately: The shopper is immediately redirected and selects their bank from a list.

   • Issuer selection first: The shopper selects their bank from a list shown in your payment form, and is then redirected.

2. The open banking provider redirects the shopper to the bank's website or mobile app, to complete the payment.

3. Once the payment is complete, the shopper is redirected back to your website or app.

It’s a simple, straightforward, and fast way for shoppers to make a payment.

From lowering payment fees to reaching a new audience, here are the top three reasons businesses should integrate Pay by Bank: 

Lower payment costs

The majority of payment-related costs are interchange and scheme fees. 

This makes Pay by Bank especially enticing. Why? You don’t have to pay interchange and scheme fees. 

Plus according to our recent report, the average cost savings with local payment methods is 49%, compared to credit and debit cards. 

Improve conversion 

From a conversion standpoint, Pay by Bank lets customers log in with their bank credentials and pay immediately — without the need to manually enter card information. 

It can also reduce involuntary churn:

• For subscription payments, it can bypass card expirations. For example, many shoppers will have the same bank account for years, compared to only a few years for their cards. 

• For non-subscription payments, it lowers the chance of receiving a “not enough funds” error message, as shoppers can select the bank account that’ll have the right balance. 

Let shoppers pay how they want 

While credit and debit cards make up 39% of online payment methods in Europe, newer payment methods aren’t too far behind: 

• Digital wallets make up 30%

• Pay by Bank makes up 18%

• Buy Now, Pay Later makes up 9% 

The takeaway? Consumers today are fast to embrace alternative payment methods. By offering more flexible ways to pay, businesses can meet consumer expectations.

Using a financial technology platform like Adyen can help you seamlessly integrate payment methods like Pay by Bank.

We’ve built our single platform solution with the purpose of simplifying global commerce for leading businesses.

And thanks to our expertise, we can help you add diversity to your checkout and keep a competitive edge in the UK and elsewhere.