At Alternative Payments, we’re seeing Pay by Bank become an increasingly popular payment choice at online checkouts across Europe, the UK, and beyond - but what does it actually mean? Instead of offering dozens of separate local methods, merchants can simplify their checkout experience by enabling Pay by Bank. While it’s still smart to offer variety, Pay by Bank lets customers pay directly from their bank accounts - providing a fast, secure, and modern alternative to traditional card payments.
Should your business add it to your existing payment mix? With growing adoption and smooth integration, it’s definitely worth considering. Read on to find out how Pay by Bank could benefit your online store.
Pay by Bank is the consumer-friendly name for an open banking-powered account-to-account (A2A) payment. It allows users to pay directly from their bank accounts for goods or services online.
This trend reflects a bigger shift: customers today expect speed, simplicity, and control at every step - including payments. That’s why Pay by Bank is fast becoming a preferred method at e-commerce checkouts across Europe and beyond.
The rise of Pay by Bank is being driven by a few key forces:
Consumers don’t want to enter card numbers or worry about fraud. Merchants want to cut costs and improve conversion. Pay by Bank does both - by connecting directly to a customer's bank account, removing intermediaries.
Add in local success stories like iDEAL, SEPA, and Bancontact, plus the rise in trust for direct bank payments, and it’s easy to see why this method is gaining traction fast.
Consumers love Pay by Bank for its speed and simplicity. There’s no need to type in long card numbers or create new accounts. Instead, they simply approve the payment through their banking app - often with biometric or SMS authentication.
This direct bank connection also reduces errors and creates a smoother, more secure checkout experience. With no card involved, there's less risk of fraud. In short: it’s faster, safer, and more convenient.
Pay by Bank stands out with its core advantages:
What makes it truly powerful is the use of existing banking infrastructure, enhanced by modern open banking technology that enables real-time account-to-account transfers.
What makes Pay by Bank with 2000Charge truly stand out is its use of existing banking systems, enhanced by cutting-edge open banking tech- like instant account-to-account transfers. With 2000Charge you are also getting a 100% approval rate due to secondary underlying systems that even if there is a slight chance the customer's bank is not supported the customer still has a way to pay with our selected payment method.
While the term “Pay by Bank” is relatively new, it’s quickly becoming an umbrella for various direct bank payment methods - including A2A, open banking-enabled, and real-time bank (RTB) transfers.
Previously, these were marketed differently depending on the region or industry. You might have heard terms like “open banking payments” used more in technical or financial circles.
But now, Pay by Bank is emerging as the go-to consumer-facing term, offering a consistent, trustworthy checkout experience. That consistency matters - especially for building confidence with a newer payment method.
Pay by Bank covers a range of technologies and systems:
What unifies these approaches is the user flow: customers choose Pay by Bank, verify their identity with their bank, and approve the payment - all within seconds.
It’s a seamless, modern process that’s reshaping how people pay online
When a customer chooses Pay by Bank at checkout, the provider uses open banking technology to move funds directly from the customer’s bank account to a business or merchant account. In some cases, the funds first go through the provider’s account, enabling instant reconciliation and immediate access to funds for businesses.
This process for consumers can be broken down into the following key steps:
This process for consumers can be broken down into the following key steps:
1. Choose Pay by Bank at checkout
Consumers select the “Pay by Bank” option. Next, first-time users are presented with a dropdown menu where they can choose their bank from a list of supported institutions or enter their IBAN. For returning users, a more streamlined process is available with the users’ bank pre-selected.
2. Select bank and authenticate
The consumer enters bank login details. They then authenticate using a form of strong customer authentication (SCA), which could involve receiving a code on their phone or using biometric verification, ensuring the transaction’s security.
3. Select account
The consumer chooses the specific bank account from which the payment will be taken.
4. Confirmation and transfer
Next, they confirm the payment details, including the amount and recipient. Depending on the underlying technology, the transfer can be near instantaneous, with the customer and merchant receiving confirmation of the successful transaction.
Worldwide, allow customers to use familiar local payment methods they trust—not just credit cards.