Introduction to Open Banking Payments

The adoption of pay by bank, an alternative to card payments, is gaining momentum. TrueLayer CEO and co-founder Francesco Simoneschi believes that the industry is only “at the starting line” when it comes to large retailers adopting pay by bank.

What is Pay by Bank?

Pay by bank is a payment method that allows customers to make online transactions directly from their bank accounts, bypassing card giants like Visa and Mastercard. TrueLayer, backed by Tiger Global and Stripe, is a prominent UK open banking fintech that leverages this technology.

TrueLayer has recently received strategic investment from eBay and has partnered with merchants like Amazon, Just Eat Takeaway, Revolut, and Coinbase. The company believes that Amazon’s adoption of pay by bank signifies a shift in consumer behavior.

Future of Open Banking Payments

Simoneschi sees a lot of demand for pay by bank, particularly in loyalty schemes. Many retailers have big loyalty programs, and linking pay by bank to these programs could be a key element. Additionally, variable recurring payments (VRPs) are expected to be the next big thing in open banking.

TrueLayer plans to focus on sovereign payment infrastructure and expanding its services in 2026. With the industry at the starting line, it will be interesting to see how open banking payments evolve in the future.

Conclusion

In conclusion, open banking payments are poised to revolutionize the way we make transactions. With companies like TrueLayer leading the charge, we can expect to see more retailers adopting pay by bank technology. As the industry continues to grow, it’s essential to stay informed about the latest developments.

For more information on open banking payments and the future of financial transactions, stay tuned for our upcoming articles.