Amazon’s entry into the UK’s open banking market could not have come at a better time, according to new research
Amazon in collaboration with TrueLayer has opened its checkout to bank transfers in the UK with the launch of Pay by Bank, noting the National Payments Vision as a key motivator.
On February 10, Amazon revealed UK customers can now make retail purchases directly from their bank accounts, with plans to extend the service to Prime membership payments soon.
Jonathan Boumphrey, Country Manager for UK and Ireland at Amazon, boasted the new payment option provides customers with faster refunds, as well as several other benefits.
“It takes just seconds to set up and is part of our continuous work to enhance the shopping experience for customers and provide even more ways to pay securely,” said Boumphrey.
“The streamlined setup process takes just seconds, with customers selecting their bank from a list that includes more than 99% of UK banks.”
When highlighting the advantages of the new payment option, Amazon made several comparisons with card transactions.
Security and convenience were emphasised as key benefits, explaining Pay by Bank removes the need to enter or store card details by establishing a secure connection between customers and their existing banks.
Additionally, because the service connects directly to bank accounts rather than relying on cards with expiration dates, the company noted customers don’t need to update payment details and retain control over every transaction.
Payment Expert has approached Amazon for comment.
Can Amazon see the vision?
Amazon attributed the launch of Pay by Bank to the UK’s National Payments Vision, a government-backed framework launched in 2024, which aims to promote account-to-account payments in e-commerce.
The Vision, overseen by the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR), is part of a wider plan to modernise the UK’s payments landscape.
David Geale, Executive Director of payments at the PSR, recently spoke about the strategy at the Payments Regulation and Innovation Summit on February 2, where he noted account-to-account payments are a priority.
“Resilience doesn’t just come from a single system having strong controls, as important as that is. It comes from choice – a range of payment options operating alongside one another… Giving users flexibility, supporting competition that makes the overall system more robust, and breeding innovation. This is why the National Payment Vision really matters,” he added.
The Vision has already seen strong uptake of open banking, with over 16 million active users and 33 million payments processed in November 2025 alone, a 50% increase year-on-year, according to Open Banking Limited.
Looking to build on this momentum, the FCA has promised a roadmap for Open Finance by the end of March 2026, which will explore how open banking will expand to cover savings, investments, pensions and other financial services.
Awareness gap remains
While open banking adoption figures may look strong on paper, experts warn there is still significant work to do in raising consumer familiarity with account-to-account payments.
London-based fintech Yaspa, which publishes an annual report on Pay by Bank, found last year that 55% of UK adults reported being familiar with the term, leaving just 45% unaware of the phrase, despite its increasing presence in online checkouts.
Kate Marsden, CMO at Yaspa, tells Payment Expert this trend has not only stagnated but in fact appears to be declining.
“Contrary to expectations, Yaspa’s most recent user research amongst UK consumers – the Yaspa Index – indicated a fall in familiarity with the term ‘Pay by Bank’,” Marsden says.
Yaspa welcomed Amazon’s decision to integrate the payment method at checkout, noting that large retailers could play a crucial role in improving awareness and adoption.
“We will be monitoring its release through Amazon with interest over 2026 as UK consumers familiarise themselves with both the method and its benefits,” Marsden adds.
