Revolut has introduced a new ‘Pay by Bank’ feature, allowing merchants to accept payments directly from consumers’ bank accounts. This innovation aims to disrupt the traditional card-based payment system by offering a more secure, efficient, and cost-effective alternative.
The ‘Pay by Bank’ option uses open banking technology, enabling customers to authorise payments directly through their banking apps. For mobile users, payments are authorised within the app, while desktop users can complete the process by scanning a QR code. This method eliminates the need for entering card details, reducing the risk of fraud and chargebacks while enhancing security.
Merchants stand to benefit significantly from this solution, as it eliminates card network fees, lowering transaction costs. Alex Codina, General Manager of Merchant Acquiring at Revolut, highlighted that the ‘Pay by Bank’ feature aligns with the evolving payments landscape, providing merchants with a secure and efficient payment method.
Initially available in the UK and several European countries, including Austria, Belgium, and France, Revolut plans to expand the feature to more markets soon. This move reflects a broader industry shift towards account-to-account payments, which have grown in popularity due to the benefits of open banking and the desire for more direct payment methods.
As businesses and consumers increasingly seek secure and cost-effective payment solutions, Revolut’s ‘Pay by Bank’ feature positions the company to capitalise on this trend. By offering an alternative to traditional card payments, Revolut is setting a new standard in merchant payments and shaping the future of the industry.
