Buckaroo launches Pay by Bank
The alternative to iDEAL
Pay by Bank (PbB) is the new online payment method for e-commerce. The introduction of Pay by Bank is a response to shifts in the payments market which created a growing need for a low-cost alternative to iDEAL. With this online payment solution, Buckaroo offers an alternative payment method that speeds up the checkout process for webshops up to 25% without paying extra.
How does it work?
When customers choose to pay with Pay by Bank, they click on the bank logo of their bank that automatically appears at the top of the checkout. With the secure two-step verification, they complete the payment quickly and intuitively in their familiar bank app or banking environment. By offering this solution, you shorten the checkout process by two clicks. This lowers the threshold for customers to complete a purchase which results in increased conversion and customer satisfaction.
Making an online payment varies by bank but is broadly similar to the payment process below:
- On the payment page customers select the bank logo of the bank when they want to checkout
- Customers log into their banking environment with the help of their smartphone or computer and scan the QR code
- Customers approve the payment in their banking environment
- After completing the payment, customers receive a confirmation and are redirected back to the webshop
The benefits
Based on PSD2
The introduction of the Payment Services Directive 2 (PSD2) in 2019 changed the payments market as we know it. Thanks to this piece of European legislation and together with Open Banking, new and innovative ways to make online payments such as Pay by Bank are made possible.
For the launch of Pay by Bank, Buckaroo worked closely together with IbanXS, an Open Banking platform connected to more than 2.000 European banks. To offer Pay by Bank, a license from De Nederlandsche Bank (DNB) is required. In 2020, Buckaroo - as one of the few payment service providers - acquired license 7 and license 8. These licenses allow Buckaroo to initiate payments as a Payment Initiation Service Provider (PISP) and to access consumers' payment data as an Account Information Service Provider (AISP).
Q&A
Contact our expert
Are you interested in Pay by Bank or would you like to receive more information about integrating this online payment solution? Please contact our specialist Marnix.