Payment methods
Open banking payment providers
Open banking: companies, offers and requests that work with this method.
What open banking payments are
Open banking payments (pay by bank, account-to-account or A2A) let a customer authorise a transfer directly in their bank's app through a regulated API. In the UK they run on Faster Payments; in the EU on SEPA Credit Transfer and SEPA Instant under PSD2. The payment initiation service provider (PISP) creates the payment, the customer approves it with strong authentication, and funds reach the merchant account without card networks.
Why merchants use pay by bank
- Lower cost than card acquiring, with no interchange or scheme fees.
- No card chargebacks; fraud is lower because the bank authenticates the payer.
- Instant or same-day settlement and verified payer name and account.
- Good fit for high tickets, account top-ups, invoices, iGaming and trading platforms where allowed.
Integration options
- PISP API with hosted bank-selection screens and webhooks.
- Variable recurring payments (VRP) for sweeping and, increasingly, subscriptions.
- Account information (AIS) for affordability, KYC and source-of-funds checks.
- Open banking payouts and refunds via the same provider or a payouts partner.
What to compare
- Bank coverage per country and conversion of the bank-selection flow.
- Pricing (per transaction fixed fee vs percentage), refund handling.
- Licence (FCA, EU EMI/PI) and whether funds pass through the provider's account.
- Settlement timing, currency and supported verticals.
Related pages
Open banking PSPs, open banking in the UK, SEPA, direct debit, EMI and payment institutions.
Find open banking providers
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