eBay Invests in TrueLayer and Launches ‘Pay by Bank’ to Expand Seamless Bank-Led Payments

eBay, the global online marketplace, has made a strategic investment in TrueLayer, a leading open banking infrastructure provider, while simultaneously rolling out a new “Pay by Bank” payment option across its platform. The move reflects eBay’s ambition to expand payment choice, reduce checkout friction and leverage the rapidly growing open banking ecosystem in key markets. The investment — part of a broader collaboration between eBay and TrueLayer — positions the marketplace to integrate direct bank payments alongside traditional card and digital wallet methods, offering buyers a secure, fast and low-cost way to pay directly from their bank accounts.

TrueLayer, known for powering bank-to-bank payments and data connectivity using open APIs, brings technology that enables eBay to authenticate payers, initiate payments and access real-time account data with user consent, all under strong security controls. By enabling Pay by Bank, eBay aims to enhance conversion rates, reduce dependence on card infrastructure, and offer merchants a cost-efficient alternative to card-based settlement — particularly in regions where open banking adoption is high. The initiative aligns with broader trends towards bank-centric payments, where trust, security and simplicity are central to consumer expectations.

Key Highlights

• Strategic investment: eBay invests in TrueLayer, strengthening partnership on open banking-led payments.
• Pay by Bank launched: A new payment option allowing buyers to pay directly from bank accounts using open banking APIs.
• Checkout expansion: The feature is being rolled out in primary markets where open banking is established.
• Frictionless experience: eBay users can check out without entering card details — using secure bank authentication instead.
• Merchant benefits: Lower payment costs, reduced chargebacks, and faster settlement compared with card networks.
• Open banking trend: The move signals growing adoption of bank-to-bank payments across e-commerce.

Why It Matters

1. Improving Checkout Conversion and Payment Choice

Cards and wallets remain dominant in e-commerce, but friction — such as entering long card numbers or one-time passwords — can cause drop-offs at checkout. Pay by Bank simplifies that experience: buyers authenticate with their bank using familiar credentials, authorise the payment, and checkout completes without manual data entry. This is expected to increase conversion rates and customer satisfaction, particularly among mobile shoppers.

2. Reducing Reliance on Cards and Interchange Fees

Card networks like Visa and Mastercard play a central role in online payments, but they also involve interchange and processing fees that slice into merchant margins. Direct bank payments via open banking can reduce these costs while offering stronger fraud controls and account-to-account settlement paths that bypass traditional card rails.

3. Open Banking as Strategic Infrastructure

By investing in TrueLayer, eBay deepens its access to open banking infrastructure that supports:

• Authenticated account access
• Secure payment initiation
• Real-time confirmation of funds and payment status

This complements eBay’s broader payment strategy and harnesses open APIs to deliver more flexible, consumer-centric experiences.

How Pay by Bank Works

The Pay by Bank feature typically follows these steps:

1. User selects ‘Pay by Bank’ at checkout.
2. eBay initiates a payment request via TrueLayer’s open banking APIs.
3. The user is redirected to their bank’s secure authentication (biometric/OTP).
4. Once authenticated, the transfer is completed directly from the user’s account to the merchant.
5. eBay displays confirmation of payment without the user entering card credentials.

This method combines secure bank authentication, instant feedback and direct settlement, enhancing both security and speed.

Strategic and Competitive Context

eBay’s move is part of a broader shift in digital commerce that sees bank-centric rails and open banking replacing or augmenting traditional card networks in certain flows. Retailers, marketplaces and platforms — especially in the UK, Europe and Australia — are increasingly offering bank-initiated payments as a way to differentiate experiences and reduce dependency on legacy rails.

Competitors in this space, including alternative platforms and fintechs, are also embedding open banking payments, but eBay’s size and global reach give it a strong platform to accelerate mainstream adoption.

Potential Challenges

While Pay by Bank offers many advantages, it also faces certain market hurdles:

• Bank adoption variability: Not all banks or markets have robust open banking APIs, limiting reach.
• Consumer habits: Many users are still accustomed to paying with cards or wallets.
• Regulatory complexity: Ensuring compliance with PSD2, data protection and consumer rights requires careful implementation.

eBay and TrueLayer are expected to work closely with banks and regulators to smooth adoption and scale the service responsibly.

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