Nine in Ten PSPs Now Backing Pay by Bank as Merchant Demand Grows, Token.io Survey Finds
Nine in Ten PSPs Now Backing Pay by Bank as Merchant Demand Grows, Token.io Survey Finds #
Pay by Bank, the open banking-powered method that lets consumers transfer money directly from their bank account at checkout without using card networks or entering a PIN, is now supported or planned by 90% of payment service providers (PSPs) and 59% of banks in the UK and Europe, according to a joint survey by account-to-account payment firm Token.io and Open Banking Expo.
The report, titled “Pay by Bank: Signals & Trends,” drew responses from 96 banks, PSPs, third-party providers, merchants, and other industry participants. Merchant demand appears to be the main driver: 91% of respondents reported a significant increase in merchant interest in Pay by Bank, with 39% describing that demand as “high.” In response, 95% of PSPs said the payment method was a very important strategic priority over the next two to three years.
Banks are also moving in that direction. The report found that 67% have either launched Pay by Bank or intend to, and a growing share now treat it as a revenue opportunity rather than a compliance obligation.
On growth, 78% of respondents expect at least moderate expansion for Pay by Bank in the UK over the coming year, rising to 88% for continental Europe, where open banking frameworks have continued to roll out.
Token.io chief executive Todd Clyde said the results confirm that Pay by Bank has moved beyond “early market hype” into mainstream adoption. He pointed to competitive pressure as the primary factor: PSPs that do not offer Pay by Bank risk losing clients to account-to-account specialists.
The survey also noted growing industry interest in commercial Variable Recurring Payments (CVRP), an emerging capability that would extend Pay by Bank to subscription billing, utility payments, and other recurring use cases.
Open Banking Limited estimates the annual opportunity for UK businesses at £4.4 billion when lower transaction fees and reconciliation savings are combined.
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