Revolut has added Pay by Bank as a new payment option within its Revolut Gateway, reflecting the rapid growth of Open Banking payments.
Launched on September 10, the feature enables businesses using Revolut to accept payments directly from customers’ bank accounts, creating a faster and more seamless checkout experience for both merchants and consumers.
Part of Revolut Business, the Gateway already supports a range of payment methods, but the addition of Pay by Bank is designed to improve conversion rates and keep pace with shifting consumer demand.
The rollout will begin with business customers in the UK, France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain, with more European markets set to follow.
“The payments landscape is evolving, and merchants are looking for solutions that eliminate fraud and increase optionality,” said Alex Codina, GM of Merchant Acquiring at Revolut.
“Our new Pay by Bank feature gives them exactly that. We’re empowering businesses to accept the next generation of payments, while offering their customers a secure and convenient payment experience. This can be a game-changer for everyone using our Revolut Gateway.”
What is Pay by Bank?
Pay by Bank is an account-to-account (A2A) payment method which allows customers to pay merchants and businesses directly from their bank account at the point-of-sale.
At the checkout, users can select the Pay by Bank option, with Revolut’s feature being housed in Revolut Business, and login into their online banking account to authenticate the transaction.
Once authorised, the payment is sent from the payee to the receiving bank account.
Pay by Bank is powered by Open Banking, which provides a more cost-effective alternative payment solution for merchants in particular, as the A2A payment has no attached fees, unlike with traditional card payments.
Adoption growth
Revolut cited a study conducted by Juniper Research which showed monthly Pay by Bank payments grew from 15 million to 27 million in just under one year.
With approximately 14 million people using Pay by Bank each month in the UK, the payment method is quickly becoming a mainstream alternative to card payments.
