Open banking Insights | TrueLayer Blog

BlogOpen banking

Everything you need to know about Pay by Bank in 90 seconds

Get up to speed on the future of payments. Understand what Pay by Bank is, how it works, and its key benefits for your business in this quick guide.

Hey, I'm Andy from TrueLayer, and I'm going to try and tell you everything you need to know about Pay by Bank—in just ninety seconds. Let’s start the clock. Let’s keep it simple. What is Pay by Bank? It’s a payment method that lets you pay directly from your bank account via your banking app—with zero need for card networks. That could mean buying pizza, paying for flights, or just about anything in between. And it’s actually pretty easy—and very quick. It looks a bit like this: start by tapping the Pay by Bank button, then choose your bank from the list. If you’ve used it before, we can even preselect your preferred bank. You then review the payment, and you’re seamlessly redirected to your bank app to approve it using secure biometrics. That’s Face ID or a fingerprint, to you and me. And that’s it—success. But no time to relax—we're on the clock! Now, this might be the first time you’re hearing about it, but every month in the UK, 27 million payments are made using Pay by Bank. And most people who haven’t tried it yet say they’d be happy to—if given the option. On the merchant side, nine out of ten businesses are already planning to adopt it in one way or another. So what’s in it for businesses? Number one: more potential sales. No cards means no long card numbers, no clunky 3DS2—just a smoother experience from start to finish. And it converts. Number two: because payment details are pre-populated and verified with biometrics, things like card-not-present fraud, chargebacks, and authorized push payment fraud are virtually eliminated. Number three: lower costs. Without all the intermediaries and manual admin, the total cost of Pay by Bank is typically lower than card payments. I'm running out of time—one last benefit: instant refunds. And trust me, shoppers love instant refunds. And breathe. That was a lot to cram into ninety seconds. If you’d like to take your time and learn more about Pay by Bank—and why brands like Just Eat Takeaway, lastminute.com, Ryanair, and Papa John’s already offer it at checkout—you can read our in-depth guide. There should be a link on screen now. And that’s it. Thanks for watching.

Viewing:

future of payments

Future of payments: What the UK’s new payments stack means for Pay By Bank

Big changes are coming for UK payments. Find out what and when, and how Pay by Bank will be affected.

What is an Account Servicing Payment Service Provider (ASPSP)?

Open banking couldn’t exist without ASPSPs. Find out why they’re so important to financial innovation in the UK and Europe.

Open banking and the future of retail payments

Open banking and the future of UK retail payments

We make the case that open banking can, and should be, the future of retail payments — and outline the additional initiatives needed to get us there.

Hand pointing at a finger print icon

Could open banking have a ‘de-risking’ moment?

New action by regulators and banks to tackle APP fraud could have unintended consequences for open banking in the UK.

Document with abstract UI elements

UK open banking needs a new home, a new mandate and a new roadmap

We give our views on Charlotte Crosswell’s recommendations to Government on the next steps for open banking in the UK.

Iconography of a bank, a hand receiving money and a chart going upwards

The buyer's guide to open banking payments

Looking for a trusted open banking payments provider? Use our guide to better understand what questions to ask, and what kind of answers you should look for in

Iconography showing a customer, a payment and a bank

5 steps to a high-converting signup with the help of open banking

New research from YouGov reveals what customers want from a signup process in 2023 – we examine how open banking can help.

Hand interacting with a phone that shows multiple bank accounts

What is account aggregation?

Learn how account aggregation in open banking streamlines user management and how account aggregation works. Read on to improve service for your customers.

Celebrating women in fintech: past, present and future

TrueLayeristas share their experiences and thoughts on how we can better support women in fintech.

line graph that's moving upwards surrounded by a data chain, coins, files and folders

How does open banking benefit businesses?

Open banking provides advantages to businesses of all sizes, from small enterprises to large corporations. Learn more about the benefits of open banking.

Stars from the EU flag with psd2 in the middle

Compliance & reg

How did PSD2 change open banking requirements?

We talk about everything you need to know on PSD2 open banking requirements. What is PSD2 and how it impacted open banking, read more here.

money surrounded by folders and documents

What is open banking?

Open banking is a fast, simple & secure way to transfer funds, but what is it? Let the experts explain what it is and how it benefits businesses & customers.