TrueLayer Raises $27M to Scale Pay by Bank as Europe Pushes for Its Own Payment Rails

TrueLayer has raised $27 million in a funding round led by Italy’s CDP Venture Capital, backing its plans to expand Pay by Bank across Europe as the region seeks greater control over its digital payment infrastructure.

The investment gives the London-founded fintech additional capital to scale its account-to-account payment network, which allows consumers to pay directly from their bank accounts rather than relying on traditional card-based checkout flows.

The round also carries a wider strategic message. As merchants look for faster, potentially lower-cost ways to accept payments, European investors and fintech companies are working to build payment infrastructure that can compete with established international card networks.

TrueLayer operates across 22 countries and says its network serves more than 30 million European consumers. Its Pay by Bank technology is already used by major businesses, including Ryanair and Just Eat, giving the company an established commercial base as it looks to expand adoption.

The investment was led by CDP Venture Capital, Italy’s venture capital operator, through its Large Venture fund. The funding also represents a return of sorts for TrueLayer’s Italian founders, Francesco Simoneschi and Luca Martinetti, who established the company in London in 2016.

TrueLayer Raises $27M to Expand Pay by Bank

The $27 million investment is intended to accelerate adoption of TrueLayer’s Pay by Bank network across Europe.

Rather than creating another card product, TrueLayer is building around a different payment route: moving money directly between bank accounts using open banking infrastructure. For consumers, this can mean selecting a bank at checkout, authenticating through their banking environment, and authorizing a payment without manually entering card details. For merchants, the model can offer a different way to collect funds, receive payment confirmation, and manage payment costs.

The commercial opportunity extends beyond replacing card details at checkout. Account-to-account payments can also support deposits, payouts, and other financial transactions where speed, cost, and reliable confirmation matter.

However, the $27 million announcement should be understood as growth funding, not proof that Pay by Bank has displaced cards. Card networks remain deeply embedded in consumer habits, merchant systems, and international commerce. TrueLayer’s challenge is to persuade more businesses and consumers to use bank-based payments consistently.

The company already has a substantial distribution base. Its reported presence in 22 countries and network of more than 30 million European consumers give it a platform from which to expand. The new funding is intended to help turn that reach into broader adoption.

What Is Pay by Bank, and How Does It Work?

Pay by bank is a payment method that allows a customer to authorize a payment directly from a bank account.

In a typical online purchase, a customer enters card details or uses a digital wallet linked to a card. The payment then travels through the relevant card-processing infrastructure. With Pay by Bank, the customer chooses the bank-payment option and authorizes the transfer through a bank-linked flow. Open banking technology enables the payment provider to connect the merchant’s checkout with the customer’s bank, subject to the applicable permissions, authentication, and payment arrangements. The payment is therefore based on a bank account rather than a card credential.

This distinction can be useful for merchants that process large volumes of online transactions. Depending on the market, payment design, and commercial agreement, account-to-account payments may reduce certain processing costs, provide rapid payment confirmation, and simplify reconciliation.

The benefits are not identical in every case. Pricing, availability, refunds, dispute handling, and customer protections depend on the payment service and the relevant rules. Pay by bank is not automatically cheaper or better for every transaction. Its value comes from giving merchants another payment route and consumers another way to pay.

TrueLayer’s role is to connect the banking infrastructure with the businesses accepting payments. It provides the technology and network needed to make bank-based payments available within commercial checkout experiences.

Why Europe Wants More Control Over Payment Infrastructure

The investment arrives amid a wider discussion about Europe’s strategic autonomy in financial services.

Payments are critical infrastructure. They enable online shopping, travel bookings, financial services, subscriptions, and everyday commerce. When a small number of large networks occupy central positions in payment flows, merchants and policymakers may become concerned about costs, dependence, and control.

Europe has developed sophisticated banking systems and digital payment capabilities, but international card networks remain influential in everyday transactions. Support for alternatives such as Pay by Bank reflects an effort to make better use of the region’s existing bank infrastructure. That does not mean European payment providers can simply replace international card networks overnight. Cards have major advantages, including broad acceptance, familiar customer experiences, established dispute processes, and global reach.

A credible alternative must therefore do more than move money. It needs to offer a dependable consumer experience, merchant integration, fraud controls, customer support, and clear processes for refunds and failed payments.

TrueLayer’s existing network gives it a starting point. Its presence in 22 countries and relationships with established merchants indicate that Pay by Bank is already being used commercially rather than remaining a theoretical alternative. The next challenge is to increase usage, broaden merchant acceptance, and make bank-based payments a familiar option for more consumers.

CDP Venture Capital’s involvement is significant in this context because the investor has linked the deal to Europe’s need for payment infrastructure that it can develop and control. Its investment reflects both a commercial opportunity and a broader ambition to strengthen European financial technology.

Still, the strategic-autonomy argument should not be confused with complete independence. Pay by Bank depends on participating banks, payment systems, regulation, technology providers, and merchant infrastructure. Its long-term resilience will depend on how effectively those components work together.

Ryanair and Just Eat Show the Commercial Opportunity

TrueLayer’s existing relationships with Ryanair and Just Eat demonstrate how Pay by Bank can be integrated into high-volume digital commerce.

For travel businesses, payment processing is an important part of the booking journey. Customers need a straightforward way to pay, while merchants must manage transaction costs, successful payment completion, and the operational consequences of failed transactions. Food delivery and online marketplaces face similar demands. Customers expect quick checkout experiences, and merchants need payment options that work smoothly across devices and customer groups.

Pay by Bank offers a different approach to those transactions. It can allow customers to authorize payment directly through their bank rather than using a card at the point of purchase. For businesses, the potential benefits include fewer steps involving card entry, faster payment confirmation, and different cost structures. The actual results depend on the implementation and the behavior of customers.

Consumer familiarity is an important factor. A payment method can be technically efficient but still struggle if customers do not recognize it, do not trust the authorization flow, or cannot use it with their preferred bank. Merchant acceptance can help address that challenge. When customers encounter Pay by Bank while booking travel or ordering food, they have opportunities to learn how the process works in familiar settings.

That creates a potential network effect. More merchant acceptance can make the payment method more visible, while broader consumer use can make it more attractive to additional merchants. The $27 million funding round is intended to help TrueLayer expand this network. Its commercial progress will depend on converting infrastructure coverage into repeat usage and sustained merchant demand.

CDP Venture Capital Gives the Round a Strategic Dimension

CDP Venture Capital led the investment through its Large Venture fund.

The organization is part of Italy’s state-linked investment ecosystem. According to its official announcement, CDP Equity holds a 70% stake in CDP Venture Capital, while Invitalia holds the remaining 30%. The firm manages investment funds supporting innovative companies at different stages of development. Its participation gives the TrueLayer round a dimension beyond a conventional private venture investment.

For Italy, the deal supports a company founded by Italian entrepreneurs and highlights the role of domestic talent in building financial infrastructure used across Europe. For TrueLayer, it brings backing from an investor whose stated priorities include supporting innovation and strengthening the country’s technology ecosystem.

Mario Branciforti, head of CDP Venture Capital’s Large Venture fund, said Europe needs payment infrastructure it owns and controls. He pointed to TrueLayer’s existing network and Milan engineering team as examples of the capabilities the investor wants to support.

The investment also reflects the importance of engineering capacity in payment technology. Building a payment network requires more than a checkout interface. Providers need to maintain integrations, manage bank connectivity, support merchants, improve reliability, and meet regulatory requirements across markets. These tasks require specialist teams and sustained investment.

Italy Becomes an Important Engineering Hub

TrueLayer’s Italian roots are a notable part of the funding story.

Founders Francesco Simoneschi and Luca Martinetti established the company in London in 2016. The new investment has been described by the company as a homecoming, with Italy now playing an important role in its development.

TrueLayer says approximately 70 employees, or around a quarter of its workforce, are based in Italy. Milan is one of its main engineering hubs, and the company expects to continue hiring there through 2027. That hiring plan suggests the investment is connected to the company’s operational footprint as well as its ambitions for market growth.

Payment infrastructure depends on engineering, product development, security, and compliance capabilities. Expanding those teams can help a provider support more markets and improve its services, although additional hiring alone does not guarantee commercial success. For Italy, the opportunity is to retain and develop specialist technology talent while contributing to a financial network serving customers and businesses across Europe.

The broader question is whether more European fintech companies can build internationally competitive infrastructure while maintaining strong engineering and operational bases within the region.

Can Pay by Bank Compete With Card Networks?

Pay by Bank has a clear proposition: payments can be initiated directly from a bank account, potentially reducing reliance on card-based transactions. But competing with card networks involves more than the underlying payment technology.

Cards benefit from widespread acceptance, familiar checkout experiences, and established systems for handling disputes, refunds, and unauthorised transactions. Consumers may also value credit-card features, rewards programmes, and the protections associated with particular products.

A bank transfer can offer speed and convenience, but the customer experience depends on the payment flow, bank participation, and merchant implementation. Depending on the type of transaction and applicable rules, refund and dispute processes may differ from those associated with card payments.

Merchants will therefore assess Pay by Bank based on practical outcomes: payment completion rates, costs, reconciliation, customer conversion, fraud exposure, and the effort required to integrate and support the method. Consumer adoption is equally important. People need to understand what they are authorising and feel confident that the payment is legitimate. Clear bank selection, secure authentication, and transparent confirmation are essential.

TrueLayer’s scale provides a foundation, but its next phase will require it to demonstrate that more businesses can benefit from the model and that consumers will choose it repeatedly. The company is not operating in isolation, either. Banks, payment processors, open banking providers, and other fintech firms are all shaping the account-to-account payments market. Competition will encourage providers to improve reliability, product design, and merchant support.

The outcome is unlikely to be a simple choice between cards and bank payments. Many merchants may prefer to offer several payment options, allowing customers to select the method that best fits their needs.

What the $27M Funding Means for the Payments Industry

TrueLayer’s funding round highlights the growing importance of payment choice and the infrastructure behind it.

For merchants, Pay by Bank can provide another way to accept money and potentially improve the economics of online transactions. For consumers, it offers a route to pay directly from a bank account without entering card details. For investors, it represents an opportunity to support a payment network operating across multiple European markets.

The European dimension is particularly important. Building payment infrastructure across borders requires a combination of technology, commercial relationships, local banking connections, and regulatory understanding. The ability to operate in 22 countries is therefore a meaningful part of TrueLayer’s proposition.

At the same time, network reach should not be confused with universal acceptance. Consumers may encounter different experiences depending on their bank, country, merchant, and payment setup. Expanding coverage and ensuring consistent quality will remain important as the company grows.

The funding also comes as payment providers explore new use cases, including recurring bank payments and more automated financial journeys. These applications could extend account-to-account payments beyond one-off checkout transactions, although each use case brings its own requirements for consent, controls, and reliability. For TrueLayer, the immediate priority is clear: use the investment to accelerate Pay by Bank adoption and strengthen the network that supports it.

What Happens Next for TrueLayer?

The company plans to use the $27 million investment to expand Pay by Bank across Europe while continuing to develop its Italian operations.

Its progress will depend on whether it can bring more merchants onto the network, encourage repeat consumer use, and deliver reliable payment experiences across different banking environments. Continued hiring in Italy is part of that plan, with the Milan engineering hub expected to grow through 2027.

The investment does not mean that card networks are about to disappear, nor does it guarantee that Pay by Bank will become the preferred option for every online purchase. Instead, it provides TrueLayer with more resources to compete in a market where merchants and consumers increasingly have alternatives to traditional card payments.

The bigger signal is that Europe’s payment competition is no longer only about how transactions are processed. It is also about who builds, operates, and controls the infrastructure on which those transactions depend. TrueLayer’s $27 million round gives that ambition additional financial backing and puts the company’s next phase of growth under a sharper spotlight.

TrueLayer raises $27M led by CDP Venture Capital to scale Pay by Bank

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