What is Bank on File and how does it work? What are the benefits for merchants and for consumers? And how does it compare to the likes of card on file and direct debit. Find out in our quick explainer:

Transcript:

Right? Bank on File? Bank on File. Hey. I'm Andy from TrueLayer, back for another quick explainer.

And I wanna tell you about something called Bank on File and why it's the next generation of recurring payments.

So let's get into it. Now before I explain what Bank on File is, I need to talk about the current state of play. Recurring payment options like card on file and traditional direct debit are commonplace.

They're everywhere. But they both have drawbacks for merchants and consumers. Neither of them offer the instant, secure, and visible experience that consumers want or the cost effective, high converting pay method that merchants so desperately need. In short, each option has frustrating trade offs.

And at the same time, Pay by Bank, which is the account to account method built on own banking, has landed on some of the world's biggest checkouts, and it now accounts for thirty six million payments in the UK every single month.

But the next step for Pay by Bank is the promise of a one click experience, payment after payment after payment, which is a must for so many merchants. And that's where Bank on File comes in.

Bank on File is a feature of Pay by Bank that enables merchants to capture user consent in order to create an instant one quick payment experience or take repeat payments into the future. This could be for fixed or variable amounts at regular or irregular intervals.

Now, wait a minute. I hear you pretty much shouting in the screen. Isn't that the same as this variable recurring payments thing that I've been hearing about? Not quite.

VRP is a powerful technology, but it's just one way of creating a Bank on File experience. So how does Bank on File work for the consumer? Let me show you.

Now, it's pretty simple. You select Pay by Bank, either of the checkout or to set up subscription, and you give your consent for future payments to be taken seamlessly.

Then, you just choose your bank, authenticate it in your banking app, and your payment completes in seconds. There's no cards, no manual entry or personal details, just you and your bank.

In that way, it's much like the existing Pay by Bank experience for single payments, but all your future payments will be one click and any subscriptions will be active until you wish to cancel them.

And on top of being an instant and safe payment experience that your customers expect, there are a few clever benefits to adding Bank on File to your checkout.

First, Bank on File tokenises bank account information. That's a technical way of saying that it keeps sensitive data safe and secure, so you can collect repeat payments without any unnecessary effort or further authorisation from your customers.

It also means you can create one click payment experiences that maximise conversion. And by removing cards in the equation entirely, you can create long lasting mandates directly within the consumer's bank app.

And Bank on File also gives you and your customers more visibility over every payment. Real time insights into your customer's account balance help you proactively manage payment risks. So fewer failed payments for you, less worry for your customers.

Now you've already probably started to join the dots on what Bank on File is gonna be perfect for. There's one click checkout, which is perfect for when your customers wanna shop with you regularly, removing any annoying friction from the payment journey.

And there's subscription and memberships, of course, where you want to collect payments at the same time every week or every month without needing your customers to remember to make the payment each time.

And there are instalments, where your customer pays for something over a pre agreed period of time. Plus, you can combine any of these use cases to fit your exact needs, all with just one mandate. And there you have it. Bank on File is about to be a major change in the way we collect recurring payments. One which reduces reliance on our daily payment modes and offers something that both merchants and consumers will benefit from.

To find out more about Bank on File, just click the link on screen. As always, thanks for watching.