Following the recent launch of Pay by Bank as a payment method by leading UK retailers, Amazon and eBay, PaymentExpert sat down with Yaspa CEO, James Neville, to discuss how the method stands alongside cards, and what can be done to further drive adoption.The following is an extract from the fuller interview, which is available on paymentexpert.com.

Merchant adoption and the business case

James Neville, CEO of Yaspa, describes the [Amazon and eBay] launches as ‘super, super positive,’ noting the payment method in the UK ‘is on par with cards, if not better. It has less fraud, less chargebacks. You know who you’re paying, all those things we’ve got.’

Neville explains the trajectory to Payment Expert by recalling the early days of PayPal on eBay. He says the now-familiar yellow-and-blue button was ‘the start of the ascendance of PayPal,’ and adds, ‘I think, Pay by Bank being on eBay and Amazon is just the start of another cycle.’One key motivation for merchants is cost efficiency. Unlike card networks, which pass payments through multiple intermediaries – gateway, acquirer, issuing bank – Pay by Bank transactions go directly between the consumer and merchant, lowering fees and operational overhead.

Consumer problems

While the payment method offers clear benefits for merchants, such as lower fees, reduced chargebacks and the removal of intermediaries, these same features can create hurdles for consumers.

Even when protections [such as instant refunds, strong authentication and financial transparency] are better understood, habits remain a significant friction point for adoption 

Neville explains, ‘even when new methods exist, people tend to fall back on what they know,’ emphasising the deep-rooted familiarity of card usage. 

There are also more subtle barriers at play, starting with something as simple as language. 

Yaspa found last year that 55% of UK adults were familiar with the term ‘Pay by Bank,’ but more recent research suggests recognition is falling. On the surface, this may seem like a minor or even artificial issue, but it is one Neville has consistently flagged as a real obstacle to adoption.

He tells Payment Expert that terminology can shape perception, noting ‘open banking’ as a phrase can create hesitation among consumers, while ‘Pay by Bank’ feels more intuitive and transactional. Familiarity, he suggests, is just as much about how the payment is presented as about how it works. If consumers do not immediately understand what they are being asked to do, they are far more likely to default back to cards.

This is where education, user experience and messaging become critical. Providers are not only competing on speed or cost, but on clarity, ensuring consumers recognise the process, trust it, and feel confident using it in everyday situations.

Can Pay by Bank replace cards?

Neville tells Payment Expert the future is not binary. ‘I’m not a black and white person,’ he says. ‘I don’t think you’ll ever get rid of cards. I don’t think you’ll ever get rid of open banking.’

With growing familiarity among consumers and clear benefits for merchants, he believes Pay by Bank will continue to accelerate online, adding ‘account-to-account open banking… will start to be well ahead of cards in the next three to five years.’

The challenge, however, becomes more pronounced in physical retail. Card payments, and increasingly mobile wallets, have set a high bar for convenience, with tap-to-pay now second nature for most consumers. 

Neville acknowledges this, noting in-store journeys, particularly those reliant on QR codes or multiple steps, still introduce friction which can deter use. As Neville comes close to conceding second place in these environments, his thinking shifts to a different reality unfolding elsewhere. In Asia, he explains, QR code-based payments are now part of everyday commerce, aided by incentives and rewards.

This change in thinking shows while Pay by Bank may not replace cards altogether, the innovators and leaders in the space are continuously finding ways to compete.

Read the full article here.

To learn more about Yaspa’s recent research into Pay by Bank, download your copy of The Yaspa Index 2026.

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