TrueLayer raises $27m to scale Pay by Bank

TrueLayer has secured $27 million in new funding to expand its 'Pay by Bank' infrastructure. For retailers and operators, this signals a major shift in how you might collect payments in the near future. Pay by Bank uses open banking to let customers pay directly from their bank accounts. This bypasses traditional credit card networks like Visa and Mastercard. For your business, this could mean significantly lower transaction fees compared to standard credit cards. It also reduces the risk of chargebacks since the authentication happens directly through the customer's bank app. While this specific funding round focuses on the European market, the technology is rapidly gaining traction globally. As a merchant, you should view this as a growing alternative to Buy Now, Pay Later (BNPL) and traditional credit. It offers a way to capture sales without the high merchant discount rates often associated with financing products. The influx of capital into TrueLayer suggests that the industry is betting on bank-to-bank transfers becoming a standard checkout option. Retailers who adopt this early may benefit from improved cash flow and higher margins on big-ticket items.

Source: Finextra — Lending

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