Pay by Bank is an online payment method that enables you to transfer money directly from one bank account to another, without using card networks such as Visa or Mastercard. The system is based on Open Banking, a technology that enables banks to share financial data securely with third-party providers to offer innovative services such as Pay by Bank. Thanks to this infrastructure, transactions are faster, more secure and involve lower processing costs.
Why is Pay by Bank booming?
1. Safety first
Pay by Bank is considered one of the most secure payment methods. Unlike credit card payments, which require the sharing of sensitive information (card numbers, security codes), Pay by Bank transactions take place directly between bank accounts. This considerably reduces the risk of fraud, and offers additional protection against identity theft.
2. Speed of transactions
Payments via Pay by Bank are often processed in real time, enabling merchants to receive funds almost immediately. For users, this means that the transaction is finalized more quickly, without the delays sometimes associated with other payment methods. This speed is particularly advantageous for services requiring instant confirmation.
3. Cost reduction
For merchants, transaction costs are a crucial criterion. Credit card payments are sometimes accompanied by high fees. Pay by Bank, on the other hand, offers generally lower transaction fees, which means savings for businesses. These savings can, in turn, translate into more competitive prices for consumers.
4. Simplicity and enhanced user experience
With Pay by Bank, users don't need to remember card numbers or enter complex information. They simply connect to their bank account via a secure interface to authorize the transaction. The process is fast and intuitive, enhancing the user experience and reducing cart abandonment.
What users look for in Pay by Bank
Users who opt for Pay by Bank do so for a number of reasons:
- Simplicity and speed: They want a payment method that's quick and easy to use, without having to enter lengthy information.
- Security: They're looking for an alternative to credit card payments that doesn't require them to share sensitive information.
- Alternatives to credit cards: They want a direct, more economical means of payment.
Benefits for retailers
For retailers, the benefits of Pay by Bank are also significant:
- Lower transaction costs: With costs lower than those of card networks, Pay by Bank enables companies to reduce their costs.
- Increased conversion rate: Simplified user experience reduces obstacles to payment, increasing conversion.
- Improved customer experience: Customers appreciate the fluidity and speed of the process, which helps to boost their satisfaction.
What are the main Pay by Bank applications?
Several companies offer solutions for integrating Pay by Bank:
-Easytransac: offers an innovative payment solution with easy and secure Pay by Bank integration. Thanks to its technology, merchants can offer their customers a faster, more cost-effective payment experience.
-Trustly : One of the first companies to adopt Pay by Bank, Trustly offers direct payments between bank accounts in several European countries.
-GoCardless: Specializing in recurring payments and direct debits, it also enables companies to collect payments via Open Banking.
-TrueLayer : Provides a payment API that facilitates online transactions via Open Banking, enabling companies to offer Pay by Bank as a payment option.
These solutions are seamlessly integrated, guaranteeing a frictionless user experience for consumers and simple implementation for businesses.
Comparison with other payment methods
- Credit card: While credit cards are widely used, they come with high processing fees and require the sharing of sensitive information. Pay by Bank offers a more economical and secure alternative.
- E-wallets: Services like PayPal or Apple Pay often require users to create an account and store their banking information. Pay by Bank bypasses these steps and simplifies the user experience by enabling direct payments.
In conclusion
Pay by Bank is an innovative payment solution that meets the needs of increasingly demanding customers in terms of security, simplicity and speed. For merchants, this method reduces transaction costs and improves conversion rates. By integrating Pay by Bank, they meet customers' growing expectations for a smoother, more secure payment experience.
How can we go further?
For merchants wishing to implement this solution, several market players, including Easytransac, can help you integrate Pay by Bank. If you are interested in this solution or would like to find out more, please contact us for detailed information on how Pay by Bank can transform your transactions.
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