Revolut Launches Pay by Bank Across Europe to Cut Fraud and Fees

6 hours ago

0 15 2 minutes read

Revolut

What Revolut Announced

Revolut has introduced Pay by Bank, a new feature within its Revolut Gateway platform that allows merchants to accept payments directly from customers’ bank accounts. The option is available immediately for Gateway users and will roll out across the UK, Austria, Belgium, France, Germany, Ireland, Italy, and Spain, with more markets expected to follow.Revolut Gateway, launched in 2022, already supports card payments and digital wallets. By adding Pay by Bank, Revolut is positioning itself against competitors such as TrueLayer, GoCardless, and Worldline, all of which have been expanding their services in Europe.

Investor Takeaway

Revolut’s push into open banking strengthens its merchant offering and challenges incumbents in one of Europe’s quickest-growing payment segments.

Why Pay by Bank Matters for Merchants

The service is designed to reduce fraud and chargebacks while providing customers with quicker, more seamless payments. Transactions are authorized directly through users’ banking apps, with funds typically settled within seconds under Europe’s PSD2 open banking framework. This contrasts with , where settlement can take several days.

By bypassing card rails, Revolut is tapping into cost efficiencies and reliability that appeal to merchants. For customers, the process eliminates manual entry of card details: , while desktop users can scan a QR code. This smoother checkout experience aligns with growing consumer expectations for convenience and speed.

Open Banking’s Rapid Growth in the UK and Beyond

The rollout comes as open banking adoption accelerates. In the UK, Pay by Bank transactions surged to 27 million per month in 2025, up from 15 million a year earlier. Roughly 14 million individuals now use the method monthly, according to Open Banking Limited. In total, open banking payments in the UK surpassed 300 million transactions in 2023, with small businesses playing a major role.

Globally, open banking users are projected to exceed 600 million by 2030. Europe is driving adoption through regulatory alignment with PSD2 and the upcoming PSD3 legislation, while markets such as Brazil and Australia have already introduced open finance regimes through central bank mandates.

Investor Takeaway

Open banking is scaling into mainstream payments. Revolut’s entry provides exposure to a high-growth channel expected to capture hundreds of millions of users globally.

Revolut’s Broader Payments Push

For Revolut, the launch is part of a strategy to broaden merchant services and diversify revenue streams. The company now serves more than 40 million retail customers and 500,000 business clients worldwide. Payments are increasingly central to its model, alongside banking, trading, and crypto offerings.

In 2023, Revolut reported £1.8 billion ($2.3 billion) in revenue, a 45% year-on-year increase, with payments cited as one of the quickest-growing segments. The addition of Pay by Bank signals that Revolut intends to compete head-on in Europe’s expanding open banking ecosystem while laying the foundation for global expansion.

6 hours ago

0 15 2 minutes read