Amazon Launches ‘Pay by Bank’: A Secure, Card-Free Payment Solution

WHY THIS MATTERS: Amazon’s rollout of Pay by Bank in the UK represents a watershed moment for the mass adoption of Account-to-Account (A2A) payments within the e-commerce landscape. This is more than a mere alternative checkout button; it is a critical validation of the UK’s open banking infrastructure, signaling that a global retail giant has placed its strategic bet on direct bank connectivity over traditional card rail dominance. By leveraging customers’ existing biometric bank authentication, the service not only heightens security but also offers a seamless, card-independent payment flow. Crucially, the promise of expedited refunds—funds returned within minutes rather than days—is a significant consumer benefit that fundamentally alters the value proposition of online checkout. This move applies pressure on card networks and other merchants to integrate similar instant transaction capabilities, rapidly accelerating the national transition toward the more efficient, lower-cost model of payment processing championed by the National Payment Vision

Amazon has announced Pay by Bank, a new payment method on amazon.co.uk that allows customers to complete retail purchases directly from their UK bank accounts, with the ability to pay for their Prime membership coming soon.

Pay by Bank offers strong security and convenience aligned with customers’ digital banking preferences and modern lifestyles. The service avoids the need to enter or store card details by establishing a secure connection between customers and their existing banks. Security is maintained through the customer’s own banking app, using their established biometric authentication or PIN verification systems, which helps protect financial information and provides customers with direct control over each transaction.

The service also offers refund processing efficiency, returning funds to customers’ bank accounts within minutes after Amazon confirms receipt of returned items. Since Pay by Bank relies on a direct connection to bank accounts rather than relying on physical cards with expiration dates, customers will not need to provide or update payment details – a particular benefit for Prime subscribers. This approach aligns with the growing preference for digital financial management that offers immediacy and control.

“Pay by Bank gives customers a new payment option, and a number of benefits including faster refunds,” said Jonathan Boumphrey, Country Manager for UK & Ireland at Amazon. “It takes just seconds to setup and is part of our continuous work to enhance the shopping experience for customers and provide even more ways to pay securely.”

“The streamlined setup process takes just seconds, with customers selecting their bank from a list that includes more than 99% of UK banks. Pay by Bank also provides a checkout experience that customers will find familiar if they use mobile banking apps, but with the added advantage of expedited refunds and permanent payment credentials.”

The introduction of Pay by Bank supports UK’s National Payment Vision framework, which encourages the adoption of account-to-account (A2A) payments in e-commerce as part of the country’s strategy to foster more efficient, secure, and competitive payment options for consumers and businesses.

All purchases made using Pay by Bank are covered by Amazon’s A-to-Z Guarantee, which protects customers if items don’t arrive or don’t match the description, as well as our standard return and refund policies. Customers using Pay by Bank also have generous protections available to them for up to 13 months under the UK Payment Services Regulations. 

For more information about Amazon Pay by Bank, visit www.amazon.co.uk/paybybank.

FF NEWS TAKE: This announcement is a major “needle-mover,” cementing c as a credible, large-scale challenger to established card schemes in the UK e-commerce sector. Amazon’s scale forces immediate market reaction; we predict a rapid integration race among rival merchants to capture the same benefits—namely, enhanced security and potentially reduced transaction fees—that a shift to open banking rails provides. The key factor to monitor next will be the successful migration of recurring payments, specifically Prime memberships, which will determine the long-term stickiness and commercial viability of this payment method.

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