Revolut is set to launch a “Pay by Bank” option, advancing the future of merchant payments by bypassing card networks and allowing direct transactions from consumer bank accounts.
This initiative aligns with the significant rise in open banking-driven account-to-account payments in the UK, which have surged from 15 million to 27 million monthly transactions in the past year. Currently, around 14 million users engage with Pay by Bank each month, marking it as a mainstream alternative to traditional card payments.
The Pay by Bank solution offers enhanced security for merchants while reducing costs by eliminating card-based interchange fees. Direct customer authorization through their banking app drastically minimizes the risks of fraud and chargebacks. Customers enjoy the convenience of making payments directly from their bank accounts, either via app authorization on mobile devices or by scanning a QR code on desktops.
Alex Codina, GM of merchant acquiring at Revolut, remarked, “The payments landscape is evolving, and merchants are seeking solutions that reduce fraud and expand payment options. Our new Pay by Bank feature provides just that, empowering businesses to embrace the next generation of payments while delivering a secure and convenient experience for customers. This could be transformative for all users of our Revolut Gateway.”
Initially, the feature will be available in the UK, Austria, Belgium, Croatia, Finland, France, Greece, Germany, Ireland, Italy, Lithuania, the Netherlands, Portugal, and Spain, with plans to expand to additional markets soon.