Zen.com and Mastercard expand Pay By Bank for merchants and consumers across Europe

This partnership between Zen.com and Mastercard signals a major shift in how European retailers can accept payments. By leveraging Mastercard Open Finance, merchants can now offer 'Pay by Bank' options directly at checkout. For your business, this means moving away from traditional credit card rails and their associated high interchange fees. Instead, customers authorize payments directly from their bank accounts in real-time. This technology reduces the friction of manual bank transfers and offers a secure alternative to cards. For retailers, the primary benefits are cost savings and reduced fraud risk. Open banking payments typically settle faster and carry lower transaction costs than credit cards. The service is launching across nine key European markets, including Germany, Spain, and Italy. If you operate internationally or serve European customers, this provides a way to capture sales from shoppers who are wary of debt or prefer using their liquid bank balance. It also serves as a critical alternative to traditional Buy Now, Pay Later (BNPL) services by catering to the 'pay-in-full' demographic without the credit card overhead.

Source: Finextra — Lending

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