Against the backdrop of the economic environment of recent years, which presents us with constant challenges, it is more important than ever for companies to simultaneously reduce their costs and at the same time keep up with the changing expectations of consumers. One of the latest innovations in the field of payments - Pay by Bank is a solution that fulfills exactly this purpose. This method is based on open banking technology and combines the possibility of immediate payment.
Pay by Bank is a solution that completely changes the way we are used to paying. This bill-to-bill payment method helps businesses manage their spending while creating a seamless experience for customers.
I am talking with Mihael Mihailov, co-founder and Director of Business Development at IRIS Solutions, the pioneer company in open banking in Southeast Europe about whether the Pay by Bank method is approaching the critical point of recognition by customers and when will it be universally accepted by the market in our country.
Mr. Mihailov, what is Pay by Bank in simple terms?
- Pay by Bank gives consumers more choices while allowing businesses to accept instant account-to-account payments from anyone with a payment account.
This is an easy way for anyone - a company or an individual - to pay directly from their account. After the user authenticates in their usual way, such as using their Face ID, fingerprint, or token, the money moves from their account to the account of a merchant, utility company, mobile operator, etc. instantly.
Pay by Bank complements the current payment ecosystem.
Users get a payment method that has everything they want and expect – familiarity, speed, reliability, and convenience.
What does it mean for Pay by Bank to reach its 'tipping point'?
– Whenever a new payment method or technology emerges, the logical question arises as to what it will lead to. Will it be widely adopted by consumers? When? If we look back over the past 50 years, every payment method that has been adopted in the mainstream – checks, cards, mobile wallets, Buy Now, Pay Later – reaches a moment, a tipping point, when it becomes mainstream and part of everyday life.
To reach this point, there are several must-have factors: demand, availability, experience and trust. They are interconnected and if one is missing, success cannot be achieved. But if all these factors are present, the method is doomed to success. All experts believe that Pay by Bank is approaching this moment in Europe. Our processes develop with a slight delay, but we at IRIS Solutions believe in this method and market trends prove that we are on the right track.
Recently Sofiiska Voda" JSC shared our confidence and became the first utility company in Bulgaria, which offered the method to its customers. Many of their subscribers are already personally convinced that through this method they gain time, money and security. And the first 100 new users of "Sofia Voda", who paid for the first time in this way, will also participate in a raffle for prizes.
He said that this method changes the way we have paid until now. How?
– Paying from the account is nothing new. We've all been paying by the bank for decades. We know this payment is secure, familiar, and trusted. But, until now it was required to fill out a payment order and other similar actions, now it happens by pressing one button, one link, and scanning a QR code. True, it is branded in a new way Pay by Bank, but it is connected to a payment account that people have been using for a long time.
Users are not consciously looking for the particular payment method called Pay by Bank. But they know what they want and what they expect. The new method is easily accepted because it is a familiar, fast, and convenient payment.
Often when we ask e-commerce companies if they want to add a new checkout method, they ask “We have a lot of methods, why add a new one, how would it help us?”. Our answer is simple – lower costs, faster receipt of funds, security, and a good customer experience.
Just two years ago, Pay by Bank was only available in some markets. Today in the UK and the Scandinavian countries, this is the preferred way for customers to pay.
The user experience, tested and optimized with millions of transactions, requires almost no adaptation for e-commerce payment and no change in user behavior.
The user experience in many cases is better than any known methods on the market. The integration of the service is easy from a technical point of view, and the possibilities for implementation, both in a digital environment (online platforms, mobile applications, digitally issued documents or messages) and on paper, thanks to QR technology, make it the most comprehensive method.
Pay by Bank is a fast payment method. A few clicks, 30 seconds - that's all it takes to pay using this method.
People trust what they understand as well as what they see working. Pay by Bank is an extremely secure method. Deep authentication is built-in, no sensitive information is shared with the merchant, and all payment details are pre-filled in.
For users, we found out what the benefits are. And are there benefits for businesses and financial service providers?
– We've all seen this happen before – a new payment method emerges that promises to become mainstream soon. The question is not if it will happen, but when it will happen.
Pay by Bank will not replace all other payment methods, but will only increase consumer choice and bring benefits to merchants who implement it. By capitalizing on their customers' existing demand for a simple, secure, and streamlined payment experience at a low cost, with Pay by Bank merchants can seriously outpace their competition.
