Lowered Transaction Costs, Reduced Fraud, Happy Customers: The Benefits of Pay by Bank
Traditional payment solutions have their pitfalls for both merchants and consumers. In the face of fraud and privacy concerns, consumers increasingly seek new and secure payment methods.
- In addition to high merchant transaction costs, the U.S. card industry is set to lose $165 billion to fraud over the next decade.
- One out of three eCommerce customers report they experienced fraud in 2023.
- Fifty-eight percent of consumers prefer retailers and brands offer multiple payment methods.
One solution: Pay by Bank. Pay by Bank offers a secure, low risk, and lower cost payment solution for merchants and consumers. Already highly popular in Europe, merchants are increasingly adopting Pay by Bank in the US as well.
Radial recently hosted a webinar with Link Money to discuss how Pay by Bank helps merchants avoid interchange, reduce fraud, and improve customer experience. Here’s a look at some of the insights discussed.
What is Pay by Bank?
Pay by Bank is an open banking solution that seamlessly integrates into customers’ banking apps, ensuring a smooth and effortless payment experience from their trusted banking platform.
Merchants can add Pay by Bank to their checkout pages. Consumers are then prompted to log into their bank accounts and approve transactions in seconds. No card required.
How Pay by Bank Benefits Merchants
Merchants can leverage Pay by Bank to offer their customers a secure, easy payment method amid other traditional options. They also save on transaction fees, reduce potential fraud, and improve cash flow.
- Cost savings via lower fees: Unlike traditional card payments, Pay by Bank incorporates much lower transaction processing fees. Merchants can save up to 80% on transaction costs.
- Fraud reduction: Pay by Bank facilitates direct fund transfers from consumers’ bank accounts to retailers, avoiding the fraud risks of credit card and wallet transactions.
- Operational benefits: Pay by Bank drives faster settlements, which allows merchants quick access to funds. This improves cash flow, reduces the need for external financing, and drives higher ROI.
- Improved customer experience: Customers prefer having multiple payment options when shopping online. Pay by Bank provides a secure and seamless solution that can boost conversion rates and reduce cart abandonment.
How Pay by Bank Benefits Online Shoppers
Security concerns top the list of reasons consumers abandon online shopping carts. Pay by Bank provides a very secure payment method—and it’s easy to use. Additional benefits include:
- Security and identity protection: Pay by Bank is a highly secure payment method that leverages bank-grade security. Merchants don’t store information like credit card numbers, usernames, or passwords when linked directly to bank accounts.
- Provides an alternative to credit cards: Many consumers, especially younger consumers, may be both debt averse and interested in new digital payment options. Pay by Bank provides an easy, reliable option without additional surcharges, credit card fees, or interest charges.
- Ease of use: Once merchants integrate Pay by Bank into their online checkout experiences, the consumer simply signs into their bank account to create a secure link. Consumers trust their banks, and the Pay by Bank solution speeds transaction times. It can even mean a one-click checkout for customers.
- Strong incentives: Increasingly, merchants offer consumers incentives to use Pay by Bank at checkout. Whether it is discounts, promotions, loyalty points, or exclusive offers, consumers can get better deals from their merchants by choosing the payment method.
Adopt Pay by Bank with Radial and Link Money
Radial partners with Link Money to provide a convenient, secure, and cost-efficient Pay by Bank solution. This solution redefines how merchants and consumers engage in transactions. And Radial applies 25+ years of eCommerce and payments experience to the future of payment solutions.
Merchants leverage a streamlined integration to offer Pay by Bank to customers. Radial and Link Money then provide a seamless process from front-end transaction to back-end reconciliation. The result: lowered costs, reduced fraud, and happier customers.
Learn more about Radial Payment Solutions.
