BOSTON–As Pay by Bank becomes more visible in the U.S. payments market, one group of consumers is clearly leading the way: those who use digital bank, according to a new report.
The report, “Pay by Bank Deep Dive: Digital Bank Users Are Ready to Switch,” a collaboration between PYMNTS Intelligence and Trustly, examines why these users are more open to paying directly from their bank accounts and what needs to happen for that interest to become everyday behavior.
“Digital bank users already manage much of their financial lives on their phones. They frequently use digital wallets, pay bills online and transfer money between accounts without using physical cards,” PYMNTS said. “Because of this, this method feels natural to them. Research shows that digital bank users are willing to change how they pay—but only if the value is clear. When digital banks offer discounts or rewards alongside strong buyer protection, these consumers say they would shift a meaningful share of their payments away from cards. In some cases, that shift reaches up to 35% of transactions.”
No Special Treatment Needed
According to PYMNTS, importantly, the study finds that digital bank users do not need special treatment or complex offers. They care about the same things as other consumers: saving money and feeling protected. This makes Pay by Bank easier to promote than many new payment methods. The same message can work across different customer groups, PYMNTS said.
“But a key challenge exists,” according to the analysis. “While many consumers are open to this method, only a small number currently see it as a true replacement for debit cards. That creates both risk and opportunity. Banks and merchants that move quickly can shape how consumers use and understand Pay by Bank. Those that wait may find users settling back into old habits.”
What Can be Learned
PYMNTS said that from its new “Pay by Bank Deep Dive: Digital Bank Users Are Ready to Switch,” knowledge that can be learned includes:
- Digital bank users differ from other consumers—and why it matters. The report explains who these users are, how they manage money and why their habits make them more likely to adopt this method.
- Everyday payment behavior points to future change. Learn how heavy use of digital wallets and mobile payments creates a natural path toward paying directly from bank accounts, PYMNTS said.
- Clear incentives can change consumer actions. See why discounts, rewards and buyer protection are the keys to getting consumers to move payments away from cards and toward Pay by Bank.
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