Stripe’s Bold Bet on Open Banking
Stripe has expanded its “Pay by Bank” feature in the UK and the EU through a strategic partnership with TrueLayer, a leading open banking network. This move is set to redefine how merchants and platforms accept bank payments, offering a fast, secure, and cost-effective alternative to traditional cards.
What Is Pay by Bank?
Pay by Bank allows customers to make payments directly from their bank accounts—no cards, no middlemen. Built on open banking rails, it reduces payment costs and minimizes chargeback risks. Stripe first launched this in the UK in 2022 and has now enhanced its capabilities through the TrueLayer integration.
Why It Matters for Merchants
Stripe’s Pay by Bank is more than just a feature—it’s a financial strategy. With interchange fees continuing to rise, especially in the EU, this direct bank transfer option can significantly reduce transaction costs. It’s especially attractive to platforms with thin margins or high transaction volumes.
The TrueLayer partnership adds verified bank account information, streamlining onboarding, reducing fraud, and ensuring compliance with Know Your Customer (KYC) and anti-money laundering (AML) regulations.
Seamless Integration Through Stripe Checkout and Payment Links
Stripe has made it incredibly easy to offer Pay by Bank. Merchants can enable it with just a few clicks on Stripe Checkout or by generating a Stripe Payment Link—no code required.
For platforms and marketplaces, Stripe Connect now also supports Pay by Bank. That means easier onboarding, faster settlement, and reduced operational friction.
Who’s Using It Already?
Companies like TUI (Europe’s largest travel firm) and UK-based online grocer Ocado are already using Pay by Bank to improve their customer experience and cut costs.
SubcoDevs Can Help You Leverage Stripe’s Innovations
At SubcoDevs, we specialize in Stripe integrations. Whether you want to:
- Add Pay by Bank to your platform
- Customize Stripe Checkout flows
- Automate compliance and payouts
- Or build a marketplace with Stripe Connect
We’ve done it before—and we can do it for you.
Let’s Talk.
👉 Book a free consultation to discover how SubcoDevs can increase your margins, reduce fraud, and future-proof your payment stack.