Discounts and Protection Could Shift How Digital Bank Customers Pay

Digital banking customers are showing a high willingness to ditch traditional credit cards in favor of 'Pay by Bank' (bank-to-bank transfers) and other alternative payment methods. For retailers, this represents a major opportunity to lower payment processing fees. Digital-first shoppers are no longer loyal to their credit card rewards programs alone. If you offer them a small discount or enhanced purchase protection at checkout, they are likely to switch to a bank-direct payment method. The shift is driven by a desire for better financial control and instant transaction transparency. Consumers who use digital banks like Chime or Revolut are already primed for these technologies. As a merchant, integrating bank-direct payment options can reduce your reliance on expensive credit card networks. However, the data shows that simple availability isn't enough. You must actively incentivize the behavior. Merchants who offer clear value—such as a 2% discount or extended warranties for using bank transfers—will see the highest adoption rates. This trend is particularly strong among younger demographics who are wary of debt but comfortable with fintech interfaces. Prepare your checkout stack to handle these direct integrations to stay ahead of changing consumer preferences.

Source: PYMNTS

← Return to the library· Submit a correction