Stripe has deepened its partnership with open banking provider TrueLayer, expanding their pay-by-bank solution into France and Germany as demand for seamless, card-free payments grows across Europe. The move builds on the success of their initial collaboration in the UK, where the payment method has gained strong traction.
Announced on Wednesday, the expansion will enable businesses in France and Germany to offer customers a streamlined checkout experience by allowing them to authorise payments directly from their bank accounts. Stripe’s pay-by-bank product uses TrueLayer’s open banking infrastructure, connecting securely to accounts across the EU and enabling transactions to be approved using biometric authentication rather than entering card details.
The rollout comes at a time of accelerating adoption of bank-to-bank payments across the EU, with forecasts suggesting these transactions could reach 30 billion by 2028. As the two largest economies in the bloc, France and Germany are expected to lead this growth, driven by consumer appetite for quicker, more secure and lower-cost alternatives to traditional card payments.
According to Stripe, this payment method not only reduces transaction fees for merchants but also boosts conversion rates by removing friction at checkout. TrueLayer echoed this, highlighting the added benefit of real-time visibility for businesses into their cash flow, allowing for more agile financial planning.
Industry experts believe pay-by-bank is poised to become a core payment channel in digital commerce. Ed Dean, vice president of product at global payments firm Nuvei, recently described it as a cornerstone of the future of finance. He noted that consumers are gradually embracing it as a trusted and convenient alternative to cards, particularly in the eCommerce sector where Automated Clearing House (ACH) systems have traditionally faced limitations.
Still, despite its promise, widespread adoption remains in early stages. Research from PYMNTS Intelligence and Trustly shows that strategic incentives — such as discounts or cash-back — could help overcome consumer hesitation. Their study found that these rewards significantly increased willingness to try pay-by-bank among users who were previously reluctant.
With Stripe’s expansion into France and Germany, the infrastructure is now in place to meet growing demand. The company’s collaboration with TrueLayer signals a broader shift in the payments landscape, where open banking and real-time bank transfers are increasingly seen as not just alternatives, but strong contenders to become the norm in digital payments.
