Token.io, a UK-based Pay by Bank infrastructure provider, has announced the launch of Account on File, a new feature designed to improve checkout conversion rates for Pay by Bank payments across the UK and Europe.
According to the official press release, the feature is available to payment service providers and merchants via Token.io's latest API. Account on File operates similarly to card-on-file functionality in card payments, as it securely stores a consumer's chosen bank and account details and pre-populates them for future transactions, removing up to two steps from the standard Pay by Bank checkout flow. The reduction in steps is intended to decrease drop-off rates, accelerate checkout completion, and improve the overall payment experience for returning users.
Tokenization and merchant benefits
The feature uses tokenization at its core, replacing sensitive account details with a non-sensitive token that references the user's bank account without exposing underlying data. This means merchants do not need to store sensitive account information directly, addressing both data security and compliance considerations.
For merchants and PSPs, Account on File combines the user experience improvement with the underlying advantages of A2A payments, including faster settlement, lower processing costs, and improved cash flow compared with card-based transactions. The feature is accessible via API, allowing PSPs and merchants to deploy it with minimal integration effort.
Furthermore, the launch addresses a persistent friction point in Pay by Bank adoption. While A2A payments offer structural cost advantages over card rails, the multi-step authentication and bank selection flow required at checkout has historically disadvantaged Pay by Bank relative to stored card experiences. By replicating the one-tap familiarity of card-on-file payments, Token.io is seeking to close that usability gap.
Token.io cited its own research indicating that 90% of PSPs currently offer or plan to offer Pay by Bank in the near term, suggesting that differentiation at the feature level is becoming increasingly relevant as the capability becomes more widespread.
Commenting on the news, Sam French, Director of Product at Token.io, said Account on File enables Pay by Bank to become a one-tap experience for returning payers, driving higher conversion for merchants while giving consumers a secure and familiar way to pay directly from their bank accounts.
