Pay by Bank is gaining strong momentum in Europe – Amazon is also introducing the new payment method

Digital payments in Europe are undergoing a major transformation. More and more companies are starting to offer Pay by Bank - a payment method that enables direct transfers from the customer’s bank account to the merchant’s account, without using a card.

The latest major example comes from one of the world’s largest online retailers.

Amazon introduces Pay by Bank in the UK

Amazon has officially launched Pay by Bank as a new payment method for users in the United Kingdom. Customers on the platform can now complete purchases or activate a Prime subscription without entering card details.

Payments are made through a direct connection between Amazon and the customer’s bank, with users confirming the transaction in their mobile banking app - via biometrics or a PIN.

This model offers several key advantages:

• No card details are entered or stored

• Higher security through bank-level authentication

• Faster refunds when returning a product

When a customer selects Pay by Bank, they simply choose their bank and confirm the payment through their banking app, often by scanning a QR code.

According to Jonathan Boumphrey, Country Manager at Amazon for the UK & Ireland:

“Pay by Bank gives customers a new way to pay and a range of benefits, including faster refunds. Setup takes just seconds.”

The integration covers over 99% of banks in the UK, making the method accessible to nearly all users.

Why Pay by Bank is becoming so popular

Pay by Bank is a direct result of Open Banking and the PSD2 regulation in Europe.

This technology allows licensed payment institutions to initiate payments directly between the customer’s and the merchant’s bank accounts, without the involvement of card schemes.

The main advantages are:

• Lower costs for merchants

• Higher security

• Faster settlement of payments

Traditional card payments involve multiple intermediaries, which increases both fees and processing time. With account-to-account payments, the connection is direct - between the customer’s bank and the merchant’s bank.

The trend is reaching Bulgaria

A similar trend is already emerging in the Bulgarian market. Here, this type of payment is offered under the name IRIS Pay - a method that enables direct payments from the customer’s bank account to the merchant’s account.

IRIS Pay is based on Open Banking technology and allows account-to-account payments without the use of bank cards.

Customers can pay online in just a few clicks by confirming the transaction in their mobile banking app - without entering card details.

Over the past week, two of the largest retail chains in Bulgaria - Technopolis and Praktiker - have also added this payment method to their online stores.

This is another clear sign that account-to-account payments are gradually becoming standard in the Bulgarian market, following the development of leading European economies.

The new era of payments

Payment methods are evolving rapidly, and consumers are looking for:

• Easier payments

• Higher security

• Less data entry

Pay by Bank meets these needs perfectly. That is why more and more companies - from global platforms like Amazon to major retailers in Bulgaria - are integrating it as a standard payment method.

It seems that the next major shift in online payments has already begun.