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The complete guide to Pay by Bank: what is it and how does it work?

The complete guide to Pay by Bank, the fast-growing online payment method, offering an alternative to cards. Should your business be offering it at checkout?

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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.

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.

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