The future of payments: Open Banking and Pay by Bank solutions

Tom Wijnen, Senior Product Marketing Manager at Worldline, highlights the potential of Open Banking and Pay by Bank solutions to change the payments industry.

The global payments landscape is undergoing a seismic shift driven by Open Banking and Open Finance. Central to this transformation is the digitisation and streamlining of account-to-account (A2A) payments. In 2024, Worldline launched Bank Transfer by Worldline, a pioneering example of how Open Banking principles are revolutionising European payments, especially for high-value transactions.

How Open Banking is shaping A2A payments

Open Banking provides secure APIs that enable authorised third parties to initiate payments and access account data. This environment supports A2A payments by allowing direct bank-to-bank transfers, removing intermediaries, and reducing costs. Open Finance expands these capabilities further, enabling broader data sharing and offering more transparency, security, and user control. Bank Transfer by Worldline leverages this environment, serving as a bridge that connects merchants with thousands of banks via a unified platform. This approach exemplifies how Open Banking is enabling digitised, instant, and secure payments across Europe.

Lessons from the launch in 2024

1. A unified pan-European payment method experience for consumers

Bank Transfer by Worldline demonstrates a significant step toward establishing a pan-European payment method that is compatible across borders. This is particularly relevant in ecommerce and m-commerce, where a unified, reliable payment experience across different countries offers increased convenience for consumers and conversion for merchants.

2. Navigating Europe’s fragmented banking landscape

A key challenge was the diversity of banking infrastructure, with over 3,500 banks and differing API standards. Worldline responded by creating a single-platform connectivity solution, reducing the need for multiple integrations and simplifying access for merchants and PSPs. This unified approach was crucial for scaling quickly and achieving broad market reach.

3. Evolving payment protocols for speed and reliability

While initially based on SEPA Credit Transfer (SCT), which can take days, Worldline quickly integrated SEPA Instant Credit Transfer (SCT Inst). This provides merchants with immediate confirmation that funds have arrived, enabling them to confidently proceed with the delivery of goods and services without delay. The shift towards making SCT Inst mandatory from October 2025 signals the industry’s move towards faster, more reliable payments, which is essential for high-value or urgent transactions in both online and in-store contexts.

4. Overcoming adoption barriers

Early adoption revealed specific obstacles: some banks imposed extra verification on cross-border IBANs, and unreliable notifications delayed payment confirmation. Worldline responded by establishing local collection accounts in various countries, bypassing this obstacle. Additionally, we implemented technological enhancements to improve authentication and notification reliability, working closely with banking partners to streamline the customer experience and reduce onboarding friction.

5. Enhancing functionality to drive growth

A fully mature A2A solution requires more than basic transfers. Worldline added refund capabilities, merchant reconciliation reports, and enhanced fraud detection measures. These functions, built on open APIs, foster trust and operational efficiency, encouraging wider adoption by merchants.

The broader impact of Pay by Bank and A2A payments

Bank Transfer by Worldline exemplifies the core benefits of Pay by Bank solutions: secure, cost-effective, and instant transfers, ideal for high-value or complex transactions. The Open Banking infrastructure supports digitisation and streamlining efforts, making these solutions accessible across various industries, from travel to retail and B2B. By addressing traditional pain points (e.g., delays, high costs, fraud risk), these solutions reinforce user trust through direct bank authentication, with ongoing API improvements.

Looking ahead: Open Banking’s role in the future of A2A payments

The lessons from Worldline’s launch highlight a clear trajectory: Open Banking is democratising A2A payments across Europe, enabling faster, safer, and lower-cost transactions at scale. Enhanced API standards, improved authentication flows, and innovative functionalities will continue to drive this growth. As the ecosystem matures, Pay by Bank solutions will become essential for corporate payments, ecommerce, and high-value transactions. Pushes for regulatory harmonisation, such as through PSD2 and future initiatives, will support more widespread adoption, making direct bank transfers a standard form of payment across Europe.

Final thoughts

The case of Bank Transfer by Worldline demonstrates how Open Banking and Open Finance are transforming A2A payments. By harnessing open APIs, developing robust connectivity platforms, and continuously enhancing functionalities, Worldline shows that Open Banking sets the stage for faster, safer, and more efficient payments. For merchants, embracing Pay by Bank solutions rooted in Open Banking means lower costs, greater security, and enhanced customer trust, especially for large or urgent payments. As Open Banking continues to evolve, A2A payments will likely become the backbone of Europe’s digital payments landscape.

 

This editorial piece was first published in The Paypers' Account-to-Account Payments Report 2025, which features insights into global trends, key players, partnerships, and the next phase of the A2A evolution. Access the full report to understand where the A2A payments ecosystem stands today and what’s next.

 

About the author

 

Tom has 24 years of experience in product management and development within the payments industry, specifically in the interbank and corporate-to-bank space. In recent years, he has focused on product development for Open Banking, aligned with PSD2 regulations, and more recently, on digital identity, following the eIDAS 2.0 regulation.

 

About Worldline

 

Worldline [Euronext: WLN] helps businesses of all shapes and sizes to accelerate their growth journey quickly, simply, and securely. With advanced payments technology, local expertise, and solutions customised for hundreds of markets and industries, Worldline powers the growth of over one million businesses around the world. Worldline generated EUR 4.6 billion in revenue in 2024.