Editorial update, 7 November 2026: Aryze has tested Pay by Bank in the UK with real payments. Market coverage, participating banks and merchant eligibility are agreed for each deployment. This article explains the payment method, not a promise of availability in every market.
A customer buying online should not need another account or another set of payment credentials. Pay by Bank lets them authorize an account-to-account payment through the bank they already use.
For a merchant, the useful question is not whether the method is fashionable. It is whether the payment journey, total cost and settlement arrangements fit the business.
What is Pay by Bank?
Pay by Bank is an account-to-account (A2A) payment method that allows consumers to pay directly from their bank account, without a card or digital wallet.
It is powered by open banking technology, which uses secure APIs facilitated by regulated Payment Initiation Service Providers (PISPs) to connect a merchant’s payment system to a customer’s bank.
The customer experience is straightforward:
- Select Pay by Bank at checkout
- Get redirected to their banking app to authenticate using existing security (Face ID, fingerprint, or PIN)
- Return to the merchant with the payment status
No card number is entered. No card credentials need to be shared with the merchant. Payment and account-related information may still be processed as required by the service.
This is not a workaround or a niche solution. It is a regulated, infrastructure-backed payment method that is growing rapidly across Europe and beyond, supported by frameworks like PSD2 in Europe and open banking mandates in the UK.
Why it matters for merchants
Pay by Bank from a merchant perspective comes down to three things: cost, security, speed.
Card payments carry interchange fees, scheme fees, and acquirer margins that add up quickly, particularly for high-volume or high-value transactions. Pay by Bank uses account-to-account rails rather than card networks. It can reduce processing costs, especially for higher-value payments, but the result depends on the merchant’s card rate, ticket size and Pay by Bank pricing.
Bank authentication removes the need to enter reusable card credentials at checkout. It changes the risk profile; it does not remove fraud:
- No card credentials entered at checkout
- No card number for the merchant to store
- No card-scheme chargeback process; applicable account-to-account fraud and refund protections still apply
Funds move in real time or near real time, depending on the payment rail, improving cash flow without relying on card network settlement cycles.
Why it matters for consumers
For consumers, Pay by Bank removes the need to share card details with merchants they may not fully trust. Authentication happens inside their own banking app, an environment they already use daily. Nothing new to download. No account to create. No card details to remember, or to update when a card expires.
It also gives consumers a clearer view of their spending. Because payments come directly from their bank account, the transaction can be checked in their banking app, making budgeting and reconciliation more transparent.
How Aryze helps
Aryze has tested Pay by Bank in the UK with real payments. Each deployment agrees the markets, participating banks, merchant eligibility and licensed-provider arrangements. Fit and pricing depend on the merchant’s payment profile and requirements.
Compare your payment values, card costs, customer experience and fraud profile to decide whether Pay by Bank fits your checkout.