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Beginner’s guide to Pay by Bank

Pay by Bank is gaining global traction as a novel payment method in evolving digital transactions worldwide. This innovative approach allows customers to pay conventionally without relying on credit or debit cards. It’s now the streamlined, secure best way to pay online without a credit card, and it represents a paradigm shift in the digital marketplace. 

This guide explains in detail how Pay by Bank works, as well as how to use it and provides a thorough overview of the process.

What is Pay by Bank?

Pay by Bank is a cutting-edge payment mechanism allowing consumers to initiate direct bank transfers to complete online purchases. This method circumvents the need for physical cards, leveraging online banking platforms or mobile applications to facilitate transactions. Payment providers, such as Trust Payments, collaborate with banks to offer this service, integrating it seamlessly into the consumer’s online shopping experience. Pay by Bank’s essence lies in its simplicity and directness, making it an increasingly popular choice among users who prefer to pay without a card.

How does Pay by Bank work?

The process of Pay by Bank is intuitive and user-friendly, designed to integrate seamlessly into the consumer’s online shopping journey. Here’s how it unfolds:

At checkout

When finalising a purchase, the customer selects the Pay by Bank option.

Bank selection

The user is presented with a list of partnered banks and selects their institution.

Secure login

Customers log into their online banking platform or app using their existing credentials.

Review and confirmation

The transaction details are displayed for the customer to review. Upon verification, the payment is authorised.

Instant transfer

The funds are directly transferred from the customer’s bank account to the merchant’s account, completing the transaction.

Offering a robust alternative to traditional card-based payments, this streamlined process enhances convenience and security.

Benefits of Pay by Bank

The advantages of Pay by Bank are multifaceted, benefiting both merchants and consumers:

Faster settlements

In traditional card-based transactions, funds clearing can take several days, impacting the merchant’s cash flow and operational efficiency. However, this timeline is significantly reduced with Pay by Bank, often to the same day or the next business day. This expedited settlement process allows businesses to access their funds more quickly, enhancing their financial agility and enabling them to confidently reinvest in their operations, manage expenses, and plan for growth.

Lower costs

Transaction fees are significantly lower than those associated with credit card payments. Credit card transactions typically involve various fees, including interchange fees, processing fees, and potential additional charges, which can accumulate and significantly impact a merchant’s bottom line. In contrast, Pay by Bank services often have a lower cost structure, reducing the financial burden on merchants.

Reduced chargeback risk

Particularly beneficial for industries prone to chargebacks, such as gaming and travel, Pay by Bank offers a more secure transaction framework. Pay by Bank mitigates this risk through its inherent security features and the authentication process required during the transaction, which reduces the likelihood of fraudulent activities. This secure framework gives merchants peace of mind, knowing their transactions are less susceptible to chargebacks.

Larger customer base

This payment method appeals to a broad spectrum of customers, including those making substantial transactions or those without access to traditional banking cards. Due to its direct and secure nature, customers engaged in high-value transactions, such as purchasing luxury goods or services, may find Pay by Bank more suitable. By accommodating these diverse customer preferences and needs, merchants can tap into new market segments and potentially increase their sales and revenue.

The impact of Pay by Bank

The implications of Pay by Bank extend across the banking sector, merchants, and consumers:

Growing adoption

Particularly in Europe and Asia, Pay by Bank is emerging as a preferred payment option, indicating a shift in consumer behaviour.

Reduced fraud

Enhanced security measures and authentication processes inherent in Pay by Bank significantly mitigate the risk of fraudulent transactions.

Secure login

As Pay by Bank gains popularity, traditional revenue streams for banks may evolve, reflecting a shift towards more direct and secure banking transactions.


Closing thoughts

Whether it’s enhanced security or economic efficiency, Pay by Bank represents a pivotal evolution in retail online payments. As such, merchants must be prepared to capitalise on this technology shift.

Those interested in this innovative payment method might find new horizons with Trust Payments’ Pay by Bank service.

Ready to enhance your payment processes, reduce costs, and expand your customer base? Contact Trust Payments not just to stay current but to run ahead.

Security statement

Security is our top priority at Trust Payments and we strive to ensure that all data is kept secure at all times We keep all customer data safe with AES256 encryption, SSL Certificates, and a minimum of TLS1.2, between your website and our datacentres.

Our systems are scanned quarterly using the Qualys PCI Platform, an independent Qualified Security Assessor (QSA) and approved vendors – Omnicybersecurity (UK) & Forgenix (US) – to ensure compliance with the security requirements of the card schemes.

We follow a number of rigorous security procedures on a daily basis including, but not limited to, continuous monitoring of our perimeter, dark web monitoring, and internal checks to ensure that CIA triad is maintained at all times.

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