Amazon recently introduced the Pay by Bank payment method for customers in the UK. This is a card-free alternative that allows for better convenience and a more streamlined experience for consumers. It offers many benefits for consumers and ecommerce brands alike, and aligns with the UK’s vision and framework for ecommerce payments.
Amazon Launches Pay by Bank in the UK
In a recent post by Amazon about payment methods, the company introduced and spoke about the fact that it now offers Pay By Bank to customers in the UK. This is a payment method that allows customers to pay for things directly from the funds in their bank accounts, without entering card numbers or using card networks.
This gives customers a card-free alternative on Amazon, and all purchases made with this method are covered by Amazon’s A-to-Z Guarantee, which protects consumers if items don’t arrive or don’t match what was supposed to arrive. The standard return and refund policies also apply to purchases made with this method, too.
To use Pay by Bank, you can simply add it as a payment method and choose your bank, select the method during checkout, and authorize the payment using either biometric authentication or PIN verification.
The post also briefly speaks about some of the other payment methods Amazon offers, such as credit and debit cards, gift cards, and shopping with points.
The Benefits of Pay by Bank
Pay by Bank offers plenty of benefits to consumers, such as a secure checkout experience, no expiry, and optimal convenience and flexibility. There are no complications, no card details to enter, and if consumers ever need to return items to Amazon, refunds are deposited back into their bank accounts in minutes.
Also, each payment is authorized in your bank app for security, and the company uses leading encryption and fraud prevention technology to ensure your data is safe. Only the minimum amount of required information is shared between your bank and Amazon, as well.
But in addition to consumer benefits, Pay by Bank is also great for ecommerce sellers. It offers lower costs by avoiding traditional card networks, allows for faster payments, and reduces the chances of fraud and chargebacks, as payments are authenticated right in the customers’ bank accounts.
Also, providing a quicker and more streamlined payment method may help to boost conversion rates and lower the frequency of cart abandonments.
The Move Aligns With UK Regulations
This move by Amazon makes sense in this market, as it aligns with the UK’s National Payments Vision (NPV) framework. This is a strategy that aims to create a payments system that is secure, fair, effective, innovative, and efficient. It’s also all about offering more payment method choices for consumers and sellers.
The launch of Pay by Bank in the UK also follows other recent changes the company has made in the area, such as launching Amazon Now in London.
I feel that adding new payment methods on Amazon and giving consumers more choices is never a bad thing. This is especially true for methods like Pay by Bank that reduce friction, speed up the checkout process, and boost security.
With the many benefits that this payment method provides for both buyers and sellers, I wouldn’t be shocked to see more countries around the world begin using similar systems to improve, streamline, and simplify the payment process for all parties.
