Revolut is preparing for the next generation of merchant payments with the launch of a Pay by Bank option, avoiding card networks and sucking payments directly from consumer bank accounts.
The launch comes as open banking-led account-to-account payments have surged in popularity in the UK, growing from 15 million to 27 million monthly transactions in the past year.
With approximately 14 million people now using Pay by Bank each month, this payment method is becoming a mainstream alternative to cards.
Pay by Bank payments offer a more secure solution for merchants and reduces costs by skirting card-based interchange fees. Because transactions require direct customer authorisation from their chosen banking app, the risk of fraud and chargebacks is also drastically reduced.
Customers in turn can pay directly from their bank account without the need to manually enter card details. Mobile users are simply directed to their app for authorisation, while desktop users can authorise payments by scanning a QR code.
"The payments landscape is evolving, and merchants are looking for solutions that eliminate fraud and increase optionality," says 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."
The feature will initially be available in the UK, Austria, Belgium, Croatia, Finland, France, Greece, Germany, Ireland, Italy, Lithuania, The Netherlands, Portugal and Spain, with more markets to follow.