Say Goodbye to Card Fees! Pay By Bank Is the #1 Payment Trend of 2025

If you haven't heard of it, you're lagging behind. If you've heard of it and still haven't done anything about it, this is your call to action. Pay By Bank is a seamless, secure, and cost-effective alternative to traditional card payments.

But what exactly is it, and why should businesses and consumers care? Let’s break it down.

What Is Pay By Bank?

Pay By Bank (also known as Account-to-Account (A2A) payments) allows customers to pay directly from their bank account during checkout—no cards, wallets, or intermediaries required. Leveraging Open Banking APIs, this method bridges merchants and consumers’ banks for instant, secure transactions.

How Does Pay By Bank Work?

Checkout Selection: A customer selects “Pay By Bank” at checkout (online or in-app).
Bank Redirection: They’re securely redirected to their banking app or portal.
Authentication: The user verifies the payment via biometrics (e.g., fingerprint, Face ID) or a PIN.
Instant Transfer: Funds move directly from the customer’s account to the merchant’s, often in real-time.

how pay by bank works — How Pay By Bank works

Unlike card payments, which route through networks like Visa or Mastercard, Pay By Bank cuts out intermediaries, slashing processing times and fees.

Big Businesses Are Using It—So Why Shouldn’t You?

Amazon integrated Pay By Bank across its EU and UK platforms, reducing payment failures by 30% and saving millions in card processing fees. Customers now enjoy faster checkouts with bank-level security. Lufthansa introduced Pay By Bank for flight bookings in late 2024, offering discounted fares to users who opt for this method. Settlement times dropped from 3 days to mere seconds, improving cash flow.

The NHS, the UK’s National Health Service, adopted Pay By Bank for instant payments in virtual consultations, streamlining a previously cumbersome process. Stripe added Pay By Bank to its payment suite, enabling SMEs worldwide to accept low-fee, instant transfers. Early adopters reported a 20% uptick in conversion rates.

What Are the Real Gains?

Lower Costs: Merchants save up to 80% on transaction fees compared to cards.
Speed: Settlements are instant vs. 1-3 business days for cards.
Security: Bank-grade authentication (biometrics, 2FA) minimizes fraud. No sensitive card data is shared.
User Experience: Fewer steps at checkout reduce cart abandonment.
Global Reach: Open Banking frameworks (PSD2 in Europe, FDX in the U.S.) enable cross-border adoption.

Regulatory pushes for Open Banking, rising card fees, and consumer demand for frictionless payments have propelled Pay By Bank into the mainstream. Juniper Research predicts that A2A payments will account for 25% of global e-commerce transactions by 2026, up from 8% in 2023.

Adopting Pay By Bank isn’t just a cost-saving move—it’s a competitive edge. For your customer, it’s peace of mind, speed, and simplicity.

Pay By Bank is redefining payments by blending security, efficiency, and affordability. As more industries, embrace this technology, the phrase “Pay By Bank” will soon become as commonplace as “Add to Cart.”

If you're interested in understanding more about this or other payment options for your business, reach out to us at contact@trnd7.com.