Pay by Bank: The new trend making payments safer
Pay by Bank is changing the game when it comes to online payment, and we’re excited about it. Not so long ago, paying for food at your local cafe was a lengthy process. You’d line up to pay for what seemed like decades, digging through your bag for your credit card. Upon reaching the checkout, you’d punch in buttons to satisfy a sequence of prompts.
And on those days where you got your pin wrong, you'd have to start this whole process again. Or, if you didn’t have any cash on that card, there was no option to quickly transfer money via mobile banking. You just had to listen to the loud sighs of people in the queue behind you and do the walk of shame to the back of the line while you figured out how you were going to pay.
This is no longer our reality with the rise of new online payment methods, and pay by bank is taking that one step further.
What is Pay by Bank?
Pay by Bank is a new trend that’s transforming the way we make payments. Using open banking, Pay by Bank lets you pay for things directly from your phone’s banking app. The best part is that it’s easy to use, as you don’t need to type in passwords and payment details. To pay, all you need to do is press ‘approve payment’. It’s as simple as that.
How does Pay by Bank make payments safer?
Pay by Bank is safer than traditional card payments. This is because:
- With Pay by Bank, you don’t need your physical card. This reduces the risk of your card being stolen or lost (we’ve all been there…)
- You don’t need to manually input your card details. This is safer, as people can’t steal your details, and this also means that merchants don’t have any of your sensitive data stored on their end.
- Payments are authorised by the customer’s banking app, and these apps have high levels of security.
What are some benefits of Pay by Bank for merchants and customers?
There are so many reasons to explore your Pay by Bank options. Here’s just a few:
Enhanced customer experience
Now that Covid is no longer a priority issue in the UK, the ultimate goal in the hospitality industry is improving customer experience. Implementing Pay by Bank into a hospitality setting creates a seamless customer journey, as customers can pay for their orders quickly and securely. If your customers have an easy, enjoyable experience, they’ll return to your venue, which will increase your sales and overall revenue.
On the other hand, having a poor experience will negatively impact customer loyalty, so it’s pivotal for businesses to ensure that they’re putting their customers first.
Payments are quicker and easier, reducing the length of the checkout process
Pay by Bank transforms the payment process, as it reduces the time it takes to make a transaction from a matter of minutes to a matter of seconds. This benefits customers as it makes their payment journey quick and easy. All they need to do is scan a QR code, choose a payment method and press a button to approve their payment. They don’t need to download any software, as Pay by Bank uses the banking apps that customers have already installed.
Pay by Bank is also beneficial for merchants, as it allows money to move instantly, which is good for cash flow.
Pay by Bank increases turnover for hospitality businesses.
Because open banking cuts payment time, customers will be in and out of your venue faster. This will help you turn over more tables each day, which will increase your revenue.
Protects customers and businesses from fraud
Pay by Bank is safer for customers, as it has high levels of security, and it requires customers, as well as their banks, to authorise every transaction they make.
Pay by Bank also protects businesses, as if any unauthorised payments take place, although unlikely, the bank has responsibility over these issues, rather than the business.
Reduces transaction fees
Pay by Bank also reduces transaction costs. In fact, open banking with Yoello has no transaction fees at all, saving merchants thousands on fees each year. With open banking, lengthy payment processes are a memory of the past. Today, you can pay your bill without even approaching a cash register. Modern businesses strive for efficiency, and with the aid of new technology, the possibilities are endless.
Want to see how Yoello’s open banking system can benefit your business? Book a demo today.