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Consumer Benefits of Pay by Bank

 

In our recent digital payments blog, we explored the top 5 reasons for merchants to add a digital Pay by Bank option to contact center payment flows.

As interest in alternative payment methods grows, we uncover the consumer benefits of choosing Pay by Bank, the new account to account (A2A) payment option, to checkout.

Key Consumer Benefits of Pay by Bank

Security & Confidence: Pay by Bank uses bank-level security measures to protect personal and financial information, so no card information is ever shared with merchants. Consumers will simply authenticate and approve the payment directly from their own banking application. Phone payments with an added PCI compliant solution certainly descope your agents and environments. However, consumers have no immediate visibility or guarantee that their details are safe when choosing to pay by phone – unlike the experience with Pay by Bank.

Convenience:  The user experience for Pay by Bank on a mobile device is essentially a few taps for an A2A transaction instead of the somewhat lengthy key-in or read-out for credit or debit card payments. 3DS security measures for card payments can also add complexity to card payments, increasing the average handling time for agents across the board. Pay by Bank enables instant payment processing, allowing for faster transactions.

Less Error Prone: Skipping over data entry vastly reduces the time to make a payment. Typing and even speech-to-text options are prone to error, contributing to time wasted for the consumer. With open banking, all payment information is prepopulated so consumers and agents, cannot make mistakes.

Easy Refunds: Consumers want their money back as quickly as possible. Pay by Bank makes it instant. If a refund is necessary, the process is simpler and quicker with Pay by Bank because merchants have direct access to the consumer’s bank account to pay the refund directly. Bypassing intermediaries such as credit card companies and chargeback processes which add days to the purchase refund.

More Benefits of Pay by Bank

Consumers don’t need convincing, they’re demanding flexible payment options akin to e-commerce checkout experiences. In December 2022 alone, 7.5 million payments were made in the UK using open banking, up 230% year-on-year.

Open banking technology can also be used for non-payment purposes and benefits consumers in several other ways, including:

More Competition: Open banking enables consumers to securely share financial data with third-party providers, such as fintech companies, through APIs. This increases competition among providers, which can lead to lower prices and better services for consumers.

Better Financial Management: Open banking technology allows consumers to gain a better understanding of their financial situation by providing access to their transaction data. This can help consumers make more informed decisions about spending and saving.

PCI Pal is the first provider to offer an open banking A2A payment solution specifically designed to enhance both the contact center agent’s and customer’s experience.

Reach out today for a demo of our Pay by Bank checkout experience from the perspective of agents and consumers.