Glossary
Pay by bank
Pay by bank is a payment made straight from the payer's bank account: the checkout shows the payer's bank, the payer confirms in the banking app, and the money arrives by transfer, instant where the rail allows. Behind it is either Open Banking, with a licensed payment initiation provider connecting to the bank, or a national scheme such as iDEAL, PIX or UPI. No card data is entered, there is no interchange and no chargeback, and the merchant usually pays a flat fee.
Where it works
The Netherlands has paid by bank for two decades through iDEAL; Poland through BLIK and bank transfers; Brazil and India through PIX and UPI; the UK through Open Banking on Faster Payments; the EU increasingly through Open Banking on SEPA Instant. In each market the method is as common as, or more common than, cards.
Trade-offs
Conversion depends on the bank’s app and on how many steps the payer must take; instant confirmation depends on the rail; refunds are transfers that need the payer’s account details or the provider’s refund support; and the payment is final, which protects the merchant and shifts the trust to the brand on the checkout.
On the platform
Tranzify lists pay-by-bank methods and their providers by country, shows the payer’s bank list on the hosted checkout, keeps initiated, confirmed and settled apart in the status model and refunds through the provider where it supports it.
Updated: 2026-11-08