Lloyds has partnered with hospitality technology company Lolly to enable Pay by Bank at select retail kiosks checkouts across the UK.
The payment method solution, which will be unveiled at the Open Banking Expo (October 21-22), is designed to help customers gain greater flexibility at kiosk checkouts and improve transaction time.
Also in partnership with hospitality company CH&CO, Lloyds will deliver Pay by Bank for retail customers at self service kiosks by providing a QR code at the checkout. Customers will then be instructed to scan the QR code which completes the bank-to-bank transaction.
The payment method aims to deliver near instant transaction settlement which can be performed by customers’ banking apps on their mobile phones. The payment is directly sent from the customers to the retailers bank accounts in real-time.
Lloyds and Lolly are also offering the payment method to UK retail companies as it offers lower processing fees and faster transaction time, compared to traditional debit and credit card payments.
The Pay by Bank service was initially trialled at Lloyds’ in Edinburgh to also enable merchants access to greater payment visibility when funds are transferred directly to their business accounts.
“At Lloyds, we’re always on the lookout for innovative ways to make life easier for our clients and customers. This collaboration with agile partners like Lolly and CH&Co is a great example,” said Mark Prayel, Product and Platform Embedded Payments at Lloyds.
“We’ve had a lot of fun trialling Pay by Bank in our own head office cafeteria with colleagues, and we’re looking forward to seeing how this innovation evolves across the wider hospitality and retail space.”
Pay by Bank adoption route?
Pay by Bank has surged in growth this past year, with many high-profile financial services players such as Revolut having launched the payment method within their payment offerings this year.
OpenBanking.org.uk found there were 15.16 million Pay by Bank users in July 2025, which equates to one in three adults with its speed and seamlessness being the main attributes for its payment usage.
There have been several factors due to the rise in Pay by Bank usage. One of these factors is the Data Use and Access Act being able to support Open Banking payments such as Pay by Bank. Another factor is the growing demand from customers and merchants alike.
However, the consumer-merchant relationship has also drawn criticism from the UK payments industry as to why Pay by Bank and other account-to-account payment methods have not grown as quickly as they have in countries such as Brazil and India.
By making the payment method available at self service kiosks, Lloyds and Lolly are aiming to make Pay by Bank more accessible, with an aim to drive consumer adoption over time.
“This solution showcases the power of Open Banking to simplify payments, enhance security, and deliver real value to merchants,” added Peter Moore, CEO of Lolly.
“Working alongside our partner CH&CO and Lloyds, we’ve created an innovative new solution that demonstrates what’s possible when technology and financial services come together.”
