Revolut introduces Pay by Bank option
Revolut has introduced its new Pay by Bank feature, positioning itself at the forefront of next-generation merchant payments. This innovative service bypasses traditional card networks by drawing funds directly from consumer bank accounts. The approach reduces costs for businesses while providing customers with a seamless payment experience.
The launch reflects the rapid growth of open banking payments in the UK. Account-to-account transactions have increased from 15 million to 27 million per month over the past year. Approximately 14 million consumers already use Pay by Bank monthly, confirming its emergence as a mainstream alternative to card payments.
Significant Benefits for Merchants
For merchants, the benefits are substantial. The system avoids interchange fees associated with card payments, significantly reducing transaction costs. It also enhances security by requiring direct authorization through the customer’s banking app. This approach reduces fraud risk and virtually eliminates chargebacks.
Customers enjoy added convenience by paying without entering card details. Mobile shoppers get redirected to their banking app for instant approval. Desktop users can simply scan a QR code to confirm their payment quickly.
Strategic Expansion and Future Plans
Alex Codina, GM of merchant acquiring at Revolut, explained: “The payments landscape is evolving, and merchants want solutions that eliminate fraud and increase options. Our new Pay by Bank feature delivers exactly that. We’re enabling businesses to accept next-generation payments while offering customers a secure and convenient payment experience.”
The feature is launching across multiple European markets including the UK, Austria, Belgium, Croatia, Finland, France, Germany, Greece, Ireland, Italy, Lithuania, the Netherlands, Portugal and Spain. Revolut plans to expand into additional markets in the future, demonstrating its commitment to transforming payment systems across Europe and beyond.
This innovation represents a significant step in payment technology evolution, combining open banking advantages with Revolut’s digital expertise. The service addresses growing merchant demand for lower-cost payment processing solutions while meeting consumer expectations for secure, convenient transaction methods. As open banking continues to gain traction, Revolut’s Pay by Bank positions the company as a leader in the ongoing transformation of financial services and payment processing infrastructure.
