Discounts, Buyer Protection Could Drive Digital Bank Users to Pay by Bank

Pay by Bank lets consumers authorize payments directly from bank accounts, potentially reducing card-processing costs for merchants. Adoption has been held back by a familiar trade-off: cards and wallets often offer rewards and clearer purchase protection. A PYMNTS Intelligence study conducted with Trustly suggests digital bank customers — already comfortable with wallets and login-based checkout — are a natural early market, but only if direct payments match the financial incentives and safeguards users expect.

PYMNTS reported on Aug. 28, 2026, that its January survey found digital bank users would shift an estimated 35.4% of account-to-account transfers, 32% of bill payments and 22.3% of retail purchases when offered discounts and buyer protection. The comparable shares for all respondents were 25.3%, 22% and 15.4%. Switching potential was 30% to 50% above average, while 43% of digital bank customers ranked immediate cash benefits as the strongest inducement.