How Stripe’s ‘Pay by Bank’ Expansion Is Changing the Game for Merchants and Platforms

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.

Stripe Pay by Bank

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.

Stripe Pay by Bank

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.

Stripe Pay by Bank

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.

Sources:PYMNTS Article on Stripe’s Pay by Bank Expansion