Products & Industry

PaidBy®: An Open Banking Payment Solution for Smarter Payments

Written by Constantinos Hadjineophytou | Sep 29, 2026, 2:08:46 PM

PaidBy®: An Open Banking Payment Solution for Smarter Payments

As e-commerce continues to evolve, businesses are under pressure to deliver fast, secure and seamless payment experiences, as customers expect instant transactions, minimal friction at checkout, and greater control over how they pay.

Offering an alternative to online card payments, PaidBy® is an open banking payment solution that enables customers to pay directly from their bank accounts, allowing businesses to receive funds faster, reduce costs, and streamline the checkout experience. By leveraging open banking infrastructure across the UK and EEA, PaidBy® provides a secure, efficient, and scalable payment solution for businesses regardless of size and complexity.

 

What is PaidBy®?

PaidBy® is an account-to-account (A2A) payment solution that enables customers to make real-time payments directly from their bank accounts, without the need for cards, intermediaries, or complex checkout processes. Using open banking technology, PaidBy connects businesses directly to the UK and EU banking networks, allowing funds to be tranferred securely between accounts in real time.

At checkout, customers simply:

  • Select PaidBy as their payment method
  • Choose their bank from a list
  • Log in and approve the payment via their familiar and secure banking app

This process eliminates the need for entering long card details and reduces friction, resulting in a fast and effective payment experience.

 

Built for the Modern Payments Landscape


The shift toward open banking and instant payments is transforming how businesses accept payments. Consumers increasingly prefer to pay directly from their bank accounts, using trusted banking apps rather than entering card details online. At the same time, businesses are seeking ways to reduce transaction costs, improve cash flow, and minimise fraud.

PaidBy® addresses these needs by enabling instant and real-time payments, which can be processed in as little as:

  • 10 seconds across the EEA via the SEPA Instant
  • Real-time payments in the UK via Faster Payments

This real-time settlement capability allows businesses to receive funds faster and operate with greater liquidity and financial certainty. 

 

Key Solutions by PaidBy®

PaidBy® delivers a range of capabilities designed to support the emerging needs of today’s digital commerce, as well as businesses’ payment operations. 

  • Instant Pay-by-Bank Payments 

PaidBy® enables customers to make instant payments directly from their bank accounts, eliminating the delays associated with traditional card processing. Funds are transferred in real time or near real time, allowing businesses to improve cash flow and access their funds more quickly.

  • Cardless Checkout Experience

One of the key advantages of PaidBy is its cardless payment process. Customers are no longer required to enter long card numbers, CVVs, or expiry dates. Instead, they simply authenticate the payment through a secure familiar environment, their existing banking app. This streamlined checkout experience reduces friction and can significantly improve conversion rates.

  • Lower Transaction Costs

Traditional card payments often involve interchange fees and processing costs. By enabling direct bank payments, PaidBy® reduces reliance on card networks, resulting in lower transaction fees and more cost-effective payment processing. This makes PaidBy particularly attractive for businesses processing high volumes of transactions.

  • Improved Cash Flow

With instant or same-day settlement, businesses gain faster access to funds compared to traditional payment methods. Immediate payment confirmation ensures that businesses know when funds have been received, improving liquidity and financial planning.

 

Enhanced Security and Fraud Reduction

PaidBy® operates within regulated open banking frameworks and requires customers to authenticate payments through their banking app.

This ensures that:

  • Sensitive financial data remain within the bank's secure environment 
  • Payments are authorised using strong customer authentication (SCA)
  • Fraud risk and chargebacks are significantly reduced

 

How PaidBy® Works for Businesses

PaidBy® transforms the payment journey into a simple and efficient workflow.

  • Customer selects PaidBy® at checkout
  • Customer chooses their bank from the drop-down menu
  • Payment is authorised through their banking app
  • Business receives real-time confirmation
  • Funds are settled directly into the business account

This process eliminates intermediaries, reduces payment friction, and accelerates settlement times.

 

Benefits of PaidBy® for Businesses

PaidBy® provides several strategic advantages for businesses operating in digital environments.

  • Higher Conversion Rates through a simplified checkout process.

  • Faster Settlement and Cash Flow, as instant payments improve liquidity and operational efficiency.

  • Reduced Costs avoiding high card scheme fees. 

  • Enhanced Security, as payments are authenticated through trusted banking environments. 

  • Scalable Payment Infrastructure, as PaidBy® is designed to support businesses of all sizes. 

 

Transforming Business Payments with PaidBy®

In today’s volatile digital economy, businesses need payment solutions that deliver speed, efficiency, and security.

By enabling instant account-to-account payments, reducing reliance on card networks, and streamlining checkout experiences, PaidBy® empowers businesses to improve cash flow, reduce costs, and enhance customer satisfaction.