TrueLayer adds consumer credit to its Pay by Bank network weeks before FCA regulation brings the sector under formal oversight
European Pay by Bank network TrueLayer has acquired in3, a Dutch fintech specialising in consumer credit via bank payments.
The acquisition extends TrueLayer’s ambitions beyond the debit space, where pay by bank has primarily operated – allowing consumers to authenticate one-off payments directly from their bank account at checkout.
Adding credit changes the proposition, allowing consumers to pay immediately or over time through the same flow, with buy now, pay later (BNPL) the first product to launch and longer-duration credit to follow later this year.
Pay by Bank has been gaining ground as a checkout option, with Amazon and eBay among the retailers to have integrated it in the UK, though account-to-account payments still accounted for only around 6% of e-commerce transactions in 2025.
The category remains some distance from mainstream card volumes, but TrueLayer’s expansion into credit is a direct attempt to expand on what the model can offer at the point of purchase.
Francesco Simoneschi, CEO and Co-founder of TrueLayer, said: “For the first time, consumers can choose to pay instantly or over time, directly from their bank account, through the same Pay by Bank experience they already know.
“With the addition of in3’s team and their deep expertise in consumer credit, we now have the people, the network and the products to build a truly independent European payments alternative to the card networks.”
TrueLayer enters credit space
Unlike most BNPL providers, in3 was built on account-to-account infrastructure rather than card rails, which TrueLayer says was central to its rationale for the deal.
Most BNPL products – including those from Klarna and Clearpay – remain dependent on card networks at the settlement layer, meaning merchants still absorb card acceptance costs even when offering instalment credit.
Hans Langenhuizen, CEO of in3, noted: “TrueLayer’s network gives us the infrastructure to bring that to millions more people across Europe. Together, we are giving merchants and consumers instant payments and flexible credit in a single checkout experience.”
Pay by Bank at critical juncture
The acquisition arrives at a pivotal moment for Pay by Bank; the UK Payments Initiative is expected to confirm the launch date for its commercial variable recurring payment (cVRP) scheme this week at Money20/20 Europe in Amsterdam – a development that would extend Pay by Bank into subscriptions, utilities and eventually e-commerce through a stored-credential model.
Wave one covers regulated financial services, utilities and similar lower-risk categories, with wider e-commerce applications expected in late 2026 or early 2027, subject to Treasury legislation enabling the FCA to oversee pricing arrangements.
TrueLayer is also preparing for a more immediate regulatory deadline. From 15 July 2026, BNPL providers will need to obtain FCA authorisation and conduct affordability checks on consumers, bringing the sector in line with other forms of consumer credit for the first time.
Under the rules, lenders will be required to provide clearer information on repayment terms, offer support to customers experiencing financial difficulty, and comply with Financial Conduct Authority (FCA) conduct standards including the Consumer Duty.
Around 20% of UK consumers used a BNPL service in the twelve months to May 2024, according to the FCA’s own Financial Lives Survey.
TrueLayer has not commented on how the incoming requirements will affect the in3 integration timeline.
In3 will continue operating from the Netherlands while its technology is integrated into TrueLayer’s platform.
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