Pay by Bank app from Mastercard

The world of payments has evolved significantly over recent decades with safer and more convenient payment methods being introduced and overtaking the popularity of traditional routes.

For example, with face-to-face transactions, we’ve shifted from cash to magnetic swipe to chip & pin, and most recently contactless and mobile payments have taken the crown as the consumer payment method of choice. 

And with every new innovation comes new consumer and business benefits, most markedly, improvements to security and fraud-reduction. 

In the online payments arena, the newest kid on the block is Mastercard’s Pay by Bank app(PbBa) offering, and in this article, we’ll give you the low down on what it is, how it works, and the business benefits up for grabs by using it. 

What is Pay by Bank app?

The Pay by Bank app is a brand new checkout option for online purchases that allows consumers to pay using their banking app on their smartphone. 

Essentially, PbBa puts mobile banking front and centre in the consumer buying experience since it allows them to pay for goods online directly from their bank account. 

How does it work?

When a consumer, let’s call her Betty, is browsing for her latest purchase on the web, PbBa works like this:

1. Betty adds her chosen item(s) to her basket and heads to the checkout.

2. She’s taken to the merchant’s payment gateway and shown the option to ‘pay by bank’.

3. A pop-up appears with a 6-digit code. Then Betty needs to login to her mobile banking app the usual way -  fingerprint or FaceID, then enter the 6-digit code in the Pay by Bank app section to retrieve the order.

4. Within the banking app she’s shown:

• A description of the product(s) she’s buying, 
• Her bank account balance, and 
• The cost of the item(s) in question.

5. Once Betty decides she’s happy to proceed she confirms the payment from within her mobile banking app.

6.  She gets a notification that her payment has been successfully made.

7. Back on the merchant’s website, Betty’s order confirmation is displayed. 

Betty’s order has been made without having to input any personal details or card information, making the entire process simple, secure, and seamless. 

What are the business benefits of PbBa?

The PbB app has been designed with both businesses and consumers in mind, so now let’s take a look at six ways this new payment solution could benefit you.

1. Less time and money lost to fraud - PbBa offers protection with clear issuer liability and simple disputes processing.

2. Keep more of what you earn and minimise chargebacks - PbBa undercuts other payment tools on the market. 

3. Maximised conversions and increased sales - thanks to the seamless buyer journey basket abandonment is reduced.  

4. More satisfied customers - customers can shop safe in the knowledge their payments are handled by their trusted bank. 

5. Simple refunds - refunds for payments made with PbBa should be quicker and simpler than traditional payments making keeping an eye on cashflow easier.

6. Futureproof your business - get one step ahead of the competition and offer your customers the latest and most convenient payment methods. 

Fun fact: The number of online shoppers in the UK opting to pay by bank transfer doubled between 2017 and 2019 and experts predict that instant payments like PbBa could overtake card payments by 2024. 

All in all implementing PbBa as part of your payment gateway could save you time and hassle while boosting your bottom lines, what’s not to love?

What are the consumer benefits?

It’s not just merchants who benefit but consumers too, and as a business owner, you’ll know all too well that happy customers equal better business outcomes. Here are six consumer benefits of PbBa.

1. Fast, simple, and secure online payments - Convenience is super important to consumers today and fraud protection was listed as the most important factor in a payment solution by over half of consumers asked. 

2. Payments made with a trusted provider - one of the biggest sticking points in online sales is consumer trust but PbBa can eradicate concerns.  

3. A seamless buying journey - no entering passwords, logins, payment details, or personal information. 

4. Control and visibility over finances - before confirming a payment consumers will be shown their balance, meaning they can make informed and accurate buying decisions with PbBa.

5. Ready to use - consumers don’t need to register or sign up for PbBa, the app is automatically available within their mobile banking app. 

6. Fraudulent merchant protection - shoppers can effortlessly dispute a transaction if goods and services aren’t received. 

How do I use Pay by Bank app?

If you’re sold on the value PbBa can offer both businesses and consumers the good news is, setting it up as a payment method for your online business is a doddle if you’re a takepayments customer. 

The Pay by Bank app integrates with our market-leading payment gateway, meaning you could be up and running with PbBa in no time at all with us. 

Payment gateway

A takepayments payment gateway allows your business to accept payments through your website 24/7.

They hook up with the majority of leading shopping carts and can be easily customised to maintain brand integrity and provide a streamlined customer journey.

You can manage all transactions made through your payment gateway, including PbBa, with access to real-time data and reporting on any internet-enabled device. 

Oh, and they’re super secure thanks to 3D secure technology and SSL certification. 

Next steps

Ready to future-proof your business and offer your consumers the latest and greatest in payments technology? Reach out to one of our dedicated experts to discuss our payment gateway and get the ball rolling.

Remember, at takepayments we’re all about helping small businesses succeed and that’s why we:

• Don’t charge sign up fees.
• Create personalised pricing packages for all our customers.
• Offer short 12-month contracts - we won’t tie you down.
• Have partnered up with Barclaycard, one of the most trusted names in the industry. And,
• Offer all our customers 7 day, UK based support. 

Bryony Pearce

Copywriter