Why UK businesses are switching to Pay by Bank

Did you know, in 2023, 45% of all payments made by UK businesses utilised Faster Payments and other remote banking methods? This means, more businesses are saying goodbye to traditional payment methods and choosing to get paid directly through bank accounts instead. It’s called Pay by Bank, and it’s fast becoming the go-to way to take payments. No card machines. No long settlement times. Just quick, secure, bank-to-bank payments that save money and make life easier, for both you and your customers.

So why the switch? Let’s tale a look at five reasons businesses are using Pay by Bank.

1. No card fees = better margins

Every time a customer pays by card, card networks like Visa or Mastercard take a slice. That might not seem like much, but those fees really add up, especially if you’re running on tight margins. Pay by Bank cuts the middlemen out. Payments go straight from your customer’s bank account to yours, meaning lower fees and more money in your pocket.

2. You get your money instantly

With card payments, you often have to wait a day or two to see the funds land in your account. That delay can be frustrating, more so when you’ve got stock to order or wages to cover. Pay by Bank speeds things up. So, the money lands instantly into your bank account. That means better cash flow, less stress, and more control over your business. Plus, getting paid in real time makes a big difference, whether you work in retail, hospitality, or services.

3. It’s safe, really safe

Security is top of mind for both businesses and customers. Pay by Bank is built on open banking, which means:

• Customers never share their card details
  
• Customers approve payments directly in their banking app
  
• Every transaction uses Strong Customer Authentication (SCA) like face ID, fingerprint, or passcode protection
  

And with ISO-certified platforms like Atoa, globally recognised standards for data protection are already baked in. If you’ve ever worried about chargebacks, card fraud, or data breaches, secure bank payments offer peace of mind. Less risk. More trust.

4. Easier for your customers too

People are busy and nobody likes typing out long card numbers at checkout. With Pay by Bank, your customer just:

1. Scans a QR code or clicks a payment link
   
2. Chooses their bank
   
3. Approves the payment in their bank app
   
4. Done

There’s no app to download, no logins to remember, and it works just as well on mobile as it does on desktop. In short, it’s as simple as paying with online banking and your customers will thank you for it.

5. Works wherever you do business

Pay by Bank isn’t just for online checkouts. You can also:

• Add a Pay by Bank link to your Xero or QuickBooks invoices
  
• Let customers pay with their bank account online using a payment link or a QR code
  
• Use it in-store with a simple printout or tablet display
  

It’s designed for convenience and needs no complicated integrations, and no special hardware. Whether you’re on the shop floor, sending invoices from your laptop, or taking payments over the phone, it fits right in.

The future is bank-to-bank

As more UK consumers adopt Pay by Bank apps and get used to paying through their banking interface, it’s only natural that businesses follow suit. So, you can expect lower fees, faster payouts, better security, and smoother checkouts.

Try Atoa to skip the card networks and get your money faster. Set it up in just a few minutes. Accept payments the simple, secure way, and directly from your customer’s bank account to yours.

Sources: 45% of all payments made by UK businesses utilised Faster Payments

Frequently asked Questions

What is Pay by Bank?

Pay by Bank is a way for customers to pay a business directly from their bank account using open banking, without card networks. Money moves straight from the customer’s bank to yours over account-to-account rails. With Atoa, payments usually settle in 3 to 6 seconds via Faster Payments.

How does Pay by Bank work?

Pay by Bank works by letting the customer approve a payment inside their own banking app after scanning a QR code or tapping a payment link. They choose their bank, confirm the amount and authorise it with Strong Customer Authentication such as Face ID or a fingerprint. The funds then move directly to your account, usually within 3 to 6 seconds.

Is Pay by Bank safe?

Yes, Pay by Bank is safe because every payment is approved in the customer’s banking app with Strong Customer Authentication. No card details are shared, and there are no chargebacks on Pay by Bank once a payment is approved. Atoa is FCA-authorised (FRN 1007647) and holds ISO 27001 and SOC 2 certifications.

Why are businesses switching to Pay by Bank?

Businesses are switching to Pay by Bank for lower fees, faster settlement and stronger security. Fees start from 0.6% plus VAT, up to 50% lower than typical card fees, and money usually lands in 3 to 6 seconds. It also removes chargebacks and works across in-store, online and invoice payments.