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What is Pay by Bank? Everything you need to know in 2025

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 Pay by Bank, how it works and its main benefits in just 90 seconds.

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Recurring payments

Variable recurring payments for train operators: a better way for passengers to pay

What are the changes that are making VRP possible and why are they important?

TrueLayer partners with Tebex to enter gaming market in landmark Pay by Bank deal

Tebex adds Truelayer’s Pay by Bank to its checkouts in the UK, Germany, France, Belgium & Spain. This signals a shift in how players pay and creators get paid.

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Compliance & reg

Realising the National Payments Vision: A step closer to a Pay by Bank scheme

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The Pay by Bank 2025 update is in, here's the TLDR

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TrueLayer hits $10 billion payments in a single month

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Consumer protections in ecommerce: a charged debate

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Growth of Pay by Bank

Business growth

Pay by Bank: the growth in numbers

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Pay by Bank: the fast route to payment sovereignty

With recent events highlighting the need for payment autonomy in Europe, we explore why Pay by Bank is the simplest and most-effective solution.

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