As we approach 2025, the payments landscape is on the brink of a significant transformation with the rise of pay-by-bank technology, a concept rooted in open banking. This innovative payment method is gaining traction globally, particularly in the U.S., where it is expected to complement existing payment options like digital wallets. Trustly's Chief Product Officer, Adam D’arcy, emphasizes that the success of pay-by-bank hinges on consumer and merchant engagement, alongside regulatory clarity provided by initiatives like Rule 1033. As trust in technology giants like Apple grows, consumer adoption may follow suit. The collaboration among banks, FinTechs, and merchants will be crucial, especially for smaller institutions facing compliance challenges. Real-time payments, while promising faster transactions, also raise concerns about fraud, necessitating robust anti-fraud measures. With the integration of AI for fraud detection and personalized financial insights, the future of pay-by-bank is bright, but its success will depend on addressing key challenges and fostering strategic partnerships.
Read the full article here.