BOSTON–A new report as found that “Pay by Bank” has “achieved recognition, but not routine use.”
The report, “Pay by Bank: Consumer Adoption Hinges on Security Concerns,” was released by PYMNTS Intelligence and Trustly, and explores the forces shaping consumer trust, confidence and conversion in one of the most promising innovations in digital payments, according to the organizations.
Based on a survey of 2,071 United States consumers conducted from June 20, 2025, to June 30, 2025, the report found nearly three in 10 consumers have used it in the past year.
“However, the payment method still represents just 1.5% of all U.S. retail transactions,” PYMNTS Intelligence said. “The findings reveal a clear paradox. Consumers want simplicity, speed and transparency in payments, yet many hesitate to use the technology that delivers that.”
The Key Hurdle
According to PYMNTS, security perception, not performance, is the key hurdle.
“Nearly half of debit card users who have not adopted this payment method say they believe that entering their bank credentials is less secure than using a card—even though Pay by Bank transactions never expose those credentials to merchants. Incentives also matter,” PYMNTS said. “Consumers have been trained to expect rewards, cash-back and buyer protections from card-based systems. Without equivalent benefits, even a friction-free payment experience can fail to inspire loyalty.
“The opportunity is enormous,” the PYMNTS analysis continued. “If even a small fraction of the $1.6 trillion in annual debit card spending shifts to Pay by Bank, it would represent a major gain for consumers and merchants seeking lower costs and real-time settlement.”
The Learnings
According to PYMNTS, the report offers insights into how:
Education can unlock adoption. “Clearer communication about data privacy and security standards can help demystify Pay by Bank and earn consumer confidence.”
Personalized incentives drive conversion. “Tailored rewards, cash-equivalent savings and buyer protections can nudge consumers toward habitual use.”
FinTech innovation can redefine trust. “Aligning Pay by Bank with open banking security, instant transfers and transparent pricing can turn a niche payment method into a mainstream movement.”
For info, go here.
