A recent survey from Token.io and Open Banking Expo, based on insights from 96 banks, payment service providers (PSPs), third-party providers (TPPs), merchants, and industry experts, highlights the growing importance of Pay by Bank as a key offering for both banks and PSPs. This shift is primarily driven by increasing merchant demand.

Key Findings

According to the survey, 59% of banks and 90% of PSPs are either currently providing or planning to introduce Pay by Bank services as part of their portfolio. The research underscores that this demand is fueled by several factors: reduced processing fees, enhanced settlement efficiency, and improved conversion rates.

Ninety-one percent of respondents noted a strong merchant demand for Pay by Bank, with 39% considering it high. For PSPs, 95% view Pay by Bank as significant in their near-term product strategy, with 40% deeming it very important.

Financial institutions are also recognizing the commercial potential of Pay by Bank. Forty-two percent of surveyed banks already offer such services to corporate clients, while most are either accepting or planning to accept deposits and payments from retail customers through Pay by Bank.

The survey further indicates that industry attention is shifting towards Commercial Variable Recurring Payments (CVRP), a new capability within Pay by Bank. A majority of PSPs and nearly all TPPs surveyed are aware that merchants are requesting support for CVRP features, with 62% of PSPs planning to implement this functionality by the end of 2026.

The findings also suggest another driver behind the demand for Pay by Bank: a move towards onshoring payment services. Seventy-five percent of respondents indicated that moving payment services in-house is at least somewhat important, while 29% see it as highly significant.