Amazon joins UK Pay-by-Bank A2A payment system — full details
What the new system is
- A card-free checkout that transfers money directly from a shopper’s bank account to Amazon.
- Built on the UK’s Open Banking framework, connecting securely to the customer’s bank.
- Customers authenticate payments inside their banking app (biometric or PIN).
- Available to users of over 99% of UK banks. (PaymentExpert.com)
Instead of entering card numbers, users simply select their bank and approve the transaction — similar to confirming a transfer in mobile banking.
How Pay-by-Bank works (step-by-step)
- Choose Pay by Bank at checkout.
- Select your bank from the list.
- Log in through your bank’s secure authentication page.
- Confirm payment via biometric/PIN.
- Order completes instantly.
Because the bank is linked permanently, customers don’t need to re-enter payment details again. (Financial IT)
Key benefits
For shoppers
- No card details stored online → improved security (PaymentExpert.com)
- Faster refunds (Financial IT)
- No expired cards or updates required (PaymentExpert.com)
- Familiar mobile-banking approval flow (Financial IT)
- Protected by Amazon’s A-to-Z Guarantee and UK payment regulations (Financial IT)
For Amazon
- Lower processing fees than card networks
- Reduced fraud risk
- More control over payments lifecycle
- Supports subscription payments (e.g., Prime)
For the payments ecosystem
- Encourages wider adoption of A2A payments
- Boosts competition with card schemes like Visa/Mastercard
- Fits the UK government’s “National Payments Vision” strategy (PaymentExpert.com)
Why this matters (industry impact)
A2A payments transfer money directly between bank accounts — removing intermediaries and cutting costs.
The UK has been moving toward this model for years:
- Open-banking regulations enabled direct bank payments in 2018 (FinTech Magazine)
- A2A is now becoming mainstream across Europe (Open Banking Expo)
Amazon adopting it is significant because large retailers historically depend on card networks. Its participation can accelerate widespread ecommerce adoption.
Strategic partners & technology
Amazon’s UK Pay-by-Bank rollout is delivered through an open-banking integration with fintech provider TrueLayer, allowing real-time bank connections and authentication. (Open Banking Expo)
What changes for customers
| Before | Now |
|---|---|
| Enter card number | Approve in banking app |
| Card expiration issues | Permanent bank link |
| Chargebacks via card network | Bank-authorised payments |
| Slower refunds | Faster refunds |
| Stored card data risk | No card storage |
Bigger picture
Amazon’s move confirms a shift in ecommerce payments:
Past: Cards → wallets
Present: Wallets → bank-to-bank
Future: Embedded finance checkout (invisible payments)
If other large retailers follow, the UK could become one of the first major markets where online shopping works primarily without cards.
Amazon Joins UK Pay-by-Bank A2A Payment System — Case studies & industry comments
Below are real-world merchant case studies from the same UK open-banking / Pay-by-Bank ecosystem Amazon is entering, plus expert commentary explaining what the move means for ecommerce, fintechs, and consumers.
1) Merchant Case Studies (Comparable to Amazon’s checkout scale)
These examples show how large merchants benefited after adding Pay-by-Bank — the same model Amazon is adopting.
Food delivery & retail: Papa Johns
- Reduced payment processing costs by up to 40%
- Future-proofed checkout against card outages
- Improved reliability during peak traffic
Pay-by-Bank removes card networks and intermediaries, lowering fees and complexity for merchants. (Forbes)
Why this matters for Amazon:
Amazon handles billions in card fees annually — even a small percentage reduction equals huge savings.
Travel ecommerce: lastminute.com
- 20% higher average order value (AOV)
- Higher checkout resilience
- Fewer failed payments
Open-banking payments improved purchase confidence and reduced payment friction. (truelayer.com)
Amazon implication:
Higher AOV → customers more comfortable buying expensive items without card limits.
Finance & subscriptions: Lendable & Penfold
- Faster repayments and smoother funding flows
- 25% of users chose Pay-by-Bank at Penfold
- 300% growth in usage at Lendable
Direct bank authentication improves customer experience and operational efficiency. (Forbes)
Amazon implication:
Better adoption for:
- Subscribe & Save
- Prime renewals
- digital services
Airlines & delivery platforms: Ryanair & Just Eat
Major consumer brands integrated Pay-by-Bank for secure checkout and instant settlement. (FF News | Fintech Finance)
Amazon implication:
The method is proven at mass-consumer scale — not experimental anymore.
Sports betting & cashback apps: CopyBet & JamDoughnut
- Up to 60% checkout share
- Higher user retention
Users repeatedly choose Pay-by-Bank once tried due to speed and simplicity. (truelayer.com)
Amazon implication:
Repeat purchases → core of Amazon’s business model.
2) What Changes When Amazon Adds It
Checkout Experience
Pay-by-Bank allows:
- No card numbers
- No expiry dates
- No CVV failures
- Instant confirmation
This reduces fraud and payment declines. (The Fintech Times)
Merchant Economics
Card rails require multiple intermediaries — adding cost and complexity.
Account-to-account payments remove those middlemen. (Forbes)
Meaning:
Amazon moves from “pay networks” → “bank networks”
Consumer Behaviour
Once used, users keep using Pay-by-Bank — with conversion rates above 95% for returning users. (truelayer.com)
Amazon impact:
More one-click-like behaviour without needing stored cards.
3) Expert & Industry Commentary
Payments infrastructure shift
Open banking enables direct transfers authenticated inside the banking app — faster and safer than cards. (PaymentExpert.com)
Interpretation:
Amazon is joining a broader industry migration from card networks to bank rails.
Adoption momentum
UK Pay-by-Bank transactions tripled in recent years and exceed tens of millions monthly. (FF News | Fintech Finance)
Meaning:
Amazon is late enough to be safe — early enough to gain advantage.
Checkout resilience
Merchants adopting Pay-by-Bank avoid dependency on card systems and outages. (FF News | Fintech Finance)
Meaning:
Amazon improves uptime during Black Friday-level spikes.
4) Strategic Takeaways
| Area | What Amazon Gains |
|---|---|
| Costs | Lower processing fees |
| Fraud | Strong bank authentication |
| Conversion | Fewer declined payments |
| UX | Faster checkout |
| Scale | Independent of card networks |
| Recurring payments | More reliable subscriptions |
Bottom Line
Amazon isn’t just adding another payment option —
it’s aligning with a structural change in digital commerce:
Cards → Bank rails