Pay by Bank has rapidly evolved from a niche fintech feature into a widely adopted payment method, reshaping how money moves across the UK. Built on the foundations of Open Banking, it allows consumers to make direct account-to-account payments without relying on cards, reducing friction and often improving security.
Adoption has accelerated as both businesses and users look for faster, lower-cost alternatives to traditional payment systems. Over 30 million successful Pay by Bank transactions were recorded in January 2026 alone, according to figures from the Open Banking industry body. Amazon, eBay, Just Eat, Papa John’s, and Ryanair are now among the names offering it, and the list keeps growing.
What Open Banking Actually Is
Open Banking is a regulated system that allows third-party providers to access a customer’s financial data, provided the customer has given clear and informed consent, through secure application programming interfaces. It was introduced in the UK under the oversight of the Financial Conduct Authority and the Competition and Markets Authority, with the aim of increasing competition and reducing the dominance of traditional banks over customer data.
Under this framework, banks are required to share data securely with authorized providers, creating a more open financial ecosystem. This has enabled a wide range of services, including budgeting tools, faster credit checks, and more seamless payment solutions.
Among these developments, Pay by Bank has emerged as one of the most visible and widely used applications, bringing the benefits of Open Banking directly into everyday transactions for both consumers and businesses.
How Pay by Bank Works for Consumers
The concept is straightforward. At checkout, instead of entering card details, the customer selects Pay by Bank, chooses their bank from a list, and is redirected to their banking app to approve the payment. Authentication is handled by the bank itself, using biometric verification like Face ID or fingerprint, or a PIN. Once confirmed, the payment goes through as a direct account-to-account transfer.
For consumers, this removes the need to store card details with multiple retailers. Mobile and online payments have seen the biggest uptake. Paying for subscriptions, whether for streaming services, software, or regular deliveries, is increasingly being handled through Open Banking connections rather than recurring card charges. Gaming and casino platforms have adopted it, too.
For players managing deposits and withdrawals, the speed and directness of payments make a genuine difference. Sites like MrQ Casino reflect the broader shift to online platforms where fast, frictionless payment processing has become a priority, both for getting funds in and moving winnings out.
The Big Names Now Offering It
Amazon’s introduction of Pay by Bank for UK customers is one of the most significant signals of mainstream adoption. The feature lets shoppers complete purchases directly from their bank accounts without entering card details, using their own banking app for security.
It is a direct response to shifting consumer preferences toward digital banking and faster checkout options. eBay is following a similar path, partnering with TrueLayer, one of the UK’s leading Open Banking infrastructure providers, to bring account-to-account payments to its platform.
TrueLayer’s network already underpins Pay by Bank at a number of major retailers and services. The backing of platforms with eBay’s scale will push Pay by Bank further into the mainstream and make it a routine option at checkout rather than an alternative one.
What Open Banking Offers Beyond Payments
Pay by Bank is one application of Open Banking, but the framework enables much more. Variable Recurring Payments (VRPs) allow authorized providers to make repeated payments from a customer’s account, similar to a direct debit but with greater consumer control and the ability to set limits. This is being piloted across a range of use cases, including utilities and financial services.
Account aggregation is another use. Apps that connect to multiple bank accounts give consumers a unified view of their finances, making it easier to track spending, manage budgets, and identify where money is going. This kind of visibility was not possible before Open Banking without manually logging into each account separately.
Credit decisioning is also changing. Lenders using Open Banking can access real transaction data with a customer’s consent, giving a far more accurate picture of affordability than a credit score alone. For consumers with thin credit files, this can open up access to products they would otherwise be turned down for.
What It Means for Businesses
From a business perspective, Pay by Bank reduces transaction costs. Card processing fees, typically between 1.5% and 3.5% per transaction, represent a significant overhead, particularly for high-volume retailers. Account-to-account payments carry lower fees and remove chargeback risk, which is a notable operational benefit.
Settlement speed is another factor. Card payments can take days to clear; Pay by Bank transfers are processed in real time. For businesses managing cash flow, that difference matters.
As more platforms integrate Open Banking infrastructure, the expectation is that account-to-account payments will become as routine as card payments are today, a shift that has already started and shows no signs of slowing down.
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