Papa Johns rolls out Pay by Bank in the UK for better payments

This integration aims to provide a simple and secure payment experience while reducing costs for the food and beverage giant.

Leveraging Open Banking technology, the Pay by Bank feature enables transactions to be authenticated in real time, often using biometric verification through banking apps. By bypassing traditional card networks, this payment method minimises fraud risks and eliminates chargebacks, making it an attractive option for merchants and consumers alike.

For businesses, Pay by Bank offers significant cost savings compared to card-based payments. Papa Johns expects a reduction of over 40% in payment processing costs, with savings that can be reinvested into customer incentives and loyalty programs.

Additionally, the feature accelerates payment settlements, improving cash flow for merchants. Instant refunds further improve the customer experience, ensuring a smoother resolution process in case of order adjustments.

Expanding consumer adoption

Pay by Bank is gaining traction among digital-savvy consumers. TrueLayer’s network of 12 million users has shown a 25% increase in first-time conversion rates when using this payment method. The added convenience and security of bank-to-bank transactions make it a compelling alternative to traditional card payments.

The adoption of Pay by Bank solutions is experiencing significant growth across Europe, driven by regulatory advancements, technological innovations, and shifting consumer preferences. Consumer behavior reflects this trend, as the European Central Bank's 2024 study indicates that cash transactions at points of sale have declined to 52%, down from 79% in 2016, while card payments have risen to 39%. Notably, mobile payments have doubled to 6%, underscoring a growing inclination towards digital payment methods. This shift is further evidenced by the increasing number of Open Banking users in Europe, projected to reach 63.8 million by 2024, up from 12.2 million in 2020.