Although pay by bank is a relatively new offering, it is creating buzz in the business community. Executives see it as a potentially cost-effective payment method and recognize its benefits, such as improved data protection. However, concerns about implementation costs remain one factor limiting adoption.
In the long term, adopting pay by bank could cost less than keeping up with current payment methods. And that could make an impact. Some surveyed companies report their current payment methods cost more than 10% of their revenues.
PYMNTS Intelligence’s research finds that companies could adopt pay by bank and offer consumers discounts or other incentives while still paying less than their current methods. For example, 95% of companies surveyed said they would incentivize adoption of the method. However, some businesses are hesitant about offering the size of discounts that consumers might need to change their payment habits.
These are just some of the findings detailed in “Cost Concerns Hinder Merchants’ Pay by Bank Adoption — But Current Payments Could Cost More,” a PYMNTS Intelligence and Trustly collaboration. The report examines merchants’ awareness of and interest in using pay-by-bank payments. It also explores how incentives could drive adoption of this payment method — and which types have the most impact. The report draws on insights from a survey of 40 U.S. consumer-facing goods and service companies that generate revenues of $100 million or more conducted from July 19 to July 30.
The report includes crucial information that pay-by-bank providers looking to become market leaders need to know. Download the report to learn more.