Pay-by-Bank: paying by bank transfer has never been so easy!

Being able to offer fast and secure bank transfers to your platform’s users is a definite competitive advantage. Whether you manage a marketplace or any other third-party platform, simplifying bank transfers will allow you to build loyalty among all your users by offering them a smooth payment path. From now on, Lemonway offers its partners the possibility to use Pay by Bank, an innovative feature with many advantages. Discover how it works!

Pay by Bank and Open banking, what PSD2 has changed

The second Payment Services Directive, commonly known as PSD2, has brought about a series of major changes, notably by introducing the concept of Open Banking. The PSD2 directive was indeed put in place to meet two objectives:

• Strengthen the security of online payments through enhanced payer authentication.
• Offer innovative services through information sharing.

Open Banking falls under this second point: it consists of sharing personal banking data electronically, securely, and only under conditions approved by customers. This has forced banks to open up their APIs to provide access to their customers’ accounts, which allows for 2 actions:

• Retrieve account holder and transaction information.
• Initiate

This evolution allows new players to position themselves on new offers:

• Account aggregation, performed by an Account Information Service Provider (AISP): the AISP connects to the banks’ APIs to retrieve the data related to a bank account and provide a service based on this information.
• Payment initiation, with a Payment Initiation Service Provider (PISP): the PISP connects to a bank account and initiates payments on behalf of the customer. This is where Pay by Bank comes in.

Pay by Bank: how does it work?

To provide the best transfer experience, Lemonway has partnered with Tink, an industry-leading provider of PISP technology.  By connecting to a PISP solution, Lemonway accesses the full portfolio of APIs from banks connected to TINK. The implementation of a single API allows access to all banks. This partnership allows marketplaces relying on Lemonway to offer their users a simplified and secure bank transfer solution.

With Pay by Bank, the customer has only 4 steps to complete during the payment process:

• Select your bank: the platform automatically redirects you to your bank space.
• Identify yourself on your bank space: a summary page is then displayed; the user only has to check the amount of the transaction before validating the payment.
• Authorise the transaction from his banking application: in the same way, as for the payment by bank card, the customer proceeds to a strong authentication to authorise the transaction by informing a confidential code via his banking interface/application or by proceeding to biometric identification.
• Check that the transaction has been accepted: a confirmation page will automatically appear on the payment page.

Pay by Bank: what are the advantages?

New opportunities for salespeople

• Data entry errors are eliminated, thanks to control over beneficiary bank details and purchase references.
• Thanks to an optimised purchase path for the final customer, the risks of losing customers are reduced.
• The payment limits can be higher, unlike those for payment by credit card.
• The expiration date of the bank card is no longer a constraint.
• The transfer is irrevocable: from the moment the transfer is made, the end-user cannot cancel it, so the seller is guaranteed to be paid;
• Transactions are more secure.
• Customers cannot dispute the transfer, so there is no need to worry about

Benefits for the user

• The payer no longer needs to leave the payment page to make the transfer.
• The user no longer has to add the payee, which saves a lot of time.
• All information is pre-filled: the customer saves time!

Ultimately, the objective of Pay by Bank consists of two points:

• Secure the collection of funds. Improve the accounting and reconciliation of transfers. Thanks to Pay by Bank, there is no need to involve the payer. Everything is pre-entered for him, and the beneficiary collects the payment automatically.
• Improve the user experience. Making a secure bank transfer has never been easier!

Thanks to its partnership with Tink, Lemonway offers a simple and optimal bank transfer payment experience. If you are interested in Pay by Bank, we invite you to contact your Lemonway account manager. If you are not yet one of our partners, contact us to discuss your needs!