This initiative enables a simple, secure, and convenient way for consumers to transfer money directly from their bank accounts during checkout.
Pay by Bank is an Open Banking-powered payment solution that facilitates direct account-to-account transfers. This payment method eliminates the need for credit cards or third-party services, offering users a faster and more secure checkout experience.
The rollout of Pay by Bank will begin with Guthaben.de, one of Recharge’s flagship platforms for the German market. Customers on this website can now choose Pay by Bank as a payment option when purchasing vouchers.
This move aligns with Recharge's commitment to improving payment experiences by prioritising customer preferences for security, speed, and simplicity.
The implementation of Pay by Bank is made possible through the collaboration of Tink and Adyen. Tink, an Open Banking provider, enables simple integration of Pay by Bank into merchant platforms. Adyen, a global financial technology platform, complements this solution by providing payment processing capabilities and financial products.
The partnership underscores the growing demand for innovative payment solutions across Europe. Recent data from Tink highlights that over 10,000 merchants have adopted Pay by Bank through partnerships with payment service providers like Adyen.
Germany stands out as a key market for digital payments in Europe, driven by its strong banking infrastructure and consumer openness to cashless solutions. Data from the Budensbank reveals even though cash is still very popular, most people now prefer cashless means of payment. When asked about their preferences, 44% of respondents prefer to pay cashless, 28% prefer cash, and 28% are indifferent. Additionally, Statista projects that the German digital payments market will reach EUR 281 billion in transaction value by the end of 2025, growing at an annual rate of 19.62%.
The adoption of alternative payment methods in Germany is particularly relevant for merchants aiming to reduce costs and improve the user experience. Research by Open Banking Implementation Entity (OBIE) found that Open Banking-powered payments can offer savings of up to 90% compared to traditional card payments, making it an attractive option for businesses with high-value transactions. Therefore, as the German digital payments ecosystem evolves, solutions leveraging Open Banking technology are poised to capture a significant share of the market, making the country a strategic focal point for Recharge, Tink, and Adyen.
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