eBay Invests in European Pay by Bank Network TrueLayer

“This milestone follows a year of strong momentum for Pay by Bank across Europe, as merchants increasingly prioritize fast, safe, and flexible payment options that align with evolving consumer payment preferences,” TrueLayer said in a Thursday (Feb. 19) news release.

The collaboration will allow eBay’s UK buyers to pay directly from their bank accounts, authorizing transactions through their own banking apps in seconds. As Pay by Bank employs bank-grade technology to authenticate payments, buyers’ bank login information is not shared with or stored by eBay. 

“Pay by Bank represents an important step in diversifying our payment mix with a secure, real-time way for buyers to pay directly from their bank accounts,” said Avritti Khandurie Mittal, vice president of product for eBay Services.

“Through our partnership with TrueLayer, we’re bringing this innovation to millions of UK customers while continuing to build a more modern, efficient payments experience.”

TrueLayer last month began offering Pay by Bank services in Finland in partnership with Stripe. The companies had joined forces to bring the service to merchants in France, Germany and the U.K. last year.

These partnerships are happening as Pay By Bank is emerging as an alternative to cards for online payments, as PYMNTS wrote in January.

Research from PYMNTS Intelligence finds that digital bank users would shift up to 35% of their transactions to Pay by Bank if given immediate discounts and buyer protection, with especially strong willingness when it comes to account-to-account transfers and bill payments. 

These are some of the categories in which cards provide the least differentiation and the highest merchant costs, the report added.

“The significance is structural. Card networks historically bundled authentication, consumer protection, rewards and acceptance into a single product,” PYMNTS wrote.

“Pay by Bank disaggregates these functions. Authentication is handled by the bank. Authorization is explicit and immediate. Rewards and protections become modular features that can be layered on rather than inherent.”

The research also found that while just 12% of consumers see Pay by Bank as a substitute for debit cards, consumers across all bank types consistently respond to the same incentives. 

“Immediate cash benefits and buyer protection dominate payment choice. Security concerns, while present, are secondary and largely assumed,” PYMNTS added.