Only three in 10 consumers use Pay by Bank method

Three in 10 consumers have used Pay by Bank in the past year, but despite growing awareness, the payment method remains a niche option rather than a mainstream alternative to cards.

A PYMNTS Intelligence report in collaboration with Trustly found that 30% of consumers have used Pay by Bank, typically for account transfers or paying regular bills, yet usage is sporadic.

Overall, Pay by Bank accounts for just 1.5% of all retail transactions, underlining the gap between trial and habitual use.

The method is most commonly used for monthly utility bills, with 21% of consumers saying they paid a bill this way in the past year, slightly down from 23% previously. A further 19% used it to move money between a bank account and an investment account.

Pay by Bank also features disproportionately in specific categories such as gambling, rideshare services, delivery purchases and account transfers, signalling potential for growth in adjacent spending areas, according to the report.

Adoption also varies sharply by age. Generation Z consumers are the most frequent users, with Pay by Bank accounting for 2.5% of their transactions, reflecting a more digital-first mindset. Whereas among baby boomers and seniors, usage falls to just 0.8%.

While current usage is limited, the report revealed that appetite for wider adoption exists, as 72% of consumers say they would consider shifting some transactions to Pay by Bank if it offered buyer protection and incentives similar to debit and credit cards.

However, security remains a major barrier, with 45% of consumers who do not view Pay by Bank as a debit card substitute saying entering bank credentials feels less secure.

Digital wallet and debit card users are the most open to Pay by Bank, while credit card users and cash-first consumers are more reluctant. Overall, 60% of consumers say they are open to the payment method, edging up to 61% among debit card users and jumping to 72% among those who primarily use digital wallets. By contrast, interest falls to 55% among consumers who favour credit cards for their transactions.