Pay by Bank
Pay by Bank is a payment method allowing customers to pay directly from their bank account, often through Open Banking. It bypasses card networks entirely and is increasingly used in e-commerce and utilities. Adoption is strongest in markets with mature Open Banking infrastructure, such as the UK.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
