Pay by Bank is gaining ground, but competing with cards will require more than another checkout button. Token.io and Open Banking Expo’s annual Pay by Bank Signals & Trends survey highlights recurring payments, one-click checkout and in-store acceptance as priorities for wider adoption.
The research gathered views from banks, payment service providers (PSPs), third-party providers, merchants and industry observers, mainly in the UK and Europe. Among respondents, 72% of banks and 87% of PSPs said they already offer or accept Pay by Bank. These figures describe survey participants—not overall market penetration.
Recurring Payments Move Centre Stage
As coverage of the survey findings explains, respondents see everyday payment convenience as essential:
59% considered recurring and one-click capabilities necessary for Pay by Bank to become a genuine card alternative in Europe.
62% identified subscriptions and bill payments as the biggest opportunity to displace existing methods.
89% of UK respondents reported merchant demand for commercial variable recurring payments.
84% across all markets said a unified consumer brand would support adoption.
Wider point-of-sale acceptance also emerged as a UK priority. For consumers, familiarity matters: a payment method needs to work beyond the occasional online purchase.
PSPs Face Opportunity—and Competition
61% of respondents viewed PSPs and payment gateways as the best route for merchants to access Pay by Bank. Integrating it alongside cards could make adoption simpler for businesses already using those providers.
However, more than a third of PSP respondents knew of merchants going directly to open banking providers. 45% of PSPs considered those providers a significant or growing competitive threat.
For teams comparing payment businesses available for acquisition on N5Deal, this raises a practical question: does the target control its merchant relationships and payment integrations, or depend heavily on another provider? A licence alone does not answer that.
Consumer Protection Still Needs Clarity
Respondents also highlighted uncertainty over who should resolve disputes and cover losses when payments go wrong. The findings point towards demand for clear scheme rules and efficient resolution processes.
The next phase is therefore about both functionality and confidence. Faster checkout helps; knowing what happens when something fails helps too.