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Amazon’s launch of Pay by Bank in the UK marks a significant moment for account-to-account (A2A) payments in e-commerce.
Amazon introduces Pay by Bank
By allowing customers to pay directly from their bank accounts without using cards, Amazon is placing Open Banking-enabled payments firmly at the centre of everyday online retail.
For a market long dominated by card networks, the move signals growing confidence in bank-based payment infrastructure and consumer readiness to adopt alternatives that prioritise security, control and speed.
A Card-Free Checkout Built on Open Banking
Pay by Bank enables customers on amazon.co.uk to complete purchases through a secure connection to their existing UK bank accounts.
Instead of entering card numbers or storing credentials, users authenticate payments within their own banking apps using familiar methods such as biometrics or PINs.
This approach leverages Open Banking rails to reduce reliance on card data while aligning closely with how consumers already manage their finances digitally.
Once set up, Pay by Bank becomes a permanent payment method that does not expire or require updates — a practical advantage for high-frequency shoppers and subscription services, including Prime membership, which Amazon plans to support soon.
Faster Refunds and Improved Consumer Experience
One of the most tangible benefits of Pay by Bank is refund speed. When a return is confirmed, funds are sent directly back to the customer’s bank account within minutes.
Compared with traditional card refunds, which can take several days, this immediacy addresses a longstanding friction point in online commerce.
For consumers, faster refunds translate into greater trust and perceived fairness. For merchants, they reduce inbound service queries and enhance post-purchase satisfaction — an often overlooked but commercially important part of the payment journey.
Regulatory Alignment and Consumer Protections
Amazon’s launch aligns closely with the UK’s National Payments Vision, which promotes wider adoption of A2A payments to improve efficiency and competition. By supporting payments from more than 99% of UK banks, Pay by Bank demonstrates the maturity and scalability of the Open Banking ecosystem.
Crucially, customers are not asked to trade protection for convenience.
Purchases made using Pay by Bank are covered by Amazon’s A-to-Z Guarantee and standard returns policies, alongside additional safeguards under the UK Payment Services Regulations for up to 13 months.
A Signal Moment for UK Payments
Amazon’s scale gives Pay by Bank significance beyond its own platform. When a global marketplace embraces Open Banking payments, it accelerates normalisation across the wider retail ecosystem.
As consumers become more comfortable paying directly from their bank accounts, and as merchants see clear operational and cost benefits, Pay by Bank could prove to be a defining step in the UK’s transition towards card-light commerce — with implications that extend well beyond Amazon itself.
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