As real-time payments and account-to-account (A2A) transfers reshape the global payments landscape, Pay by Bank is being hailed as the next big leap. Promising faster settlements, lower fees, and clearer cash flow, it’s poised to become a core payments method for both consumers and businesses. But its promise is being held back—not by a lack of interest, but by legacy infrastructure that can’t keep pace.
The challenge, according to payments experts, lies in the outdated systems that underpin much of today’s transaction infrastructure. Just as gamers had to upgrade from old consoles to access modern experiences, merchants and payment providers must modernize their technology stacks to unlock the full value of Pay by Bank.
Although the industry has made significant strides—from ACH to same-day ACH to real-time rails and request-for-payment capabilities—many ERP platforms, payment gateways, and acquiring systems remain fragmented and unable to support seamless A2A integration across regions. This creates friction, limits adoption, and stifles innovation.
Some modern providers are attempting to bridge these gaps, but the transition requires more than isolated fixes. A coordinated effort is needed across the ecosystem: payment processors, ERP vendors, e-commerce platforms, and software developers must work together to deliver interoperability, trust, and real-time reconciliation.
The consumer use case is evolving rapidly. Initially gaining traction in e-commerce, where it offers an alternative to cards and powers one-click checkouts for repeat customers, Pay by Bank is now expanding into more essential areas. Utility billing, for example, is emerging as a key space. When customers register with a utility provider, entering account and routing data creates a trusted relationship—making recurring payments via Pay by Bank not only convenient but logical.
The B2B space is also ripe for transformation. Businesses that have long relied on ACH or wire transfers can now gain greater clarity and confidence in high-value transactions through features like vendor verification and real-time liquidity checks. This adds a “light KYC” layer, reducing operational risk and enhancing security in an area where mistakes are costly.
Still, uptake in the U.S. lags behind markets like Europe and Latin America, where systems such as SEPA and Pix have provided fertile ground for Pay by Bank. In the U.S., consumer awareness remains limited. Unlike merchants, individuals don’t always see the immediate benefits. Industry players suggest that incentives—such as avoiding convenience fees—could accelerate adoption.
In the end, Pay by Bank could be a defining feature of the next generation of payments. But its potential will only be realized if the industry collectively moves past its outdated architecture and embraces the infrastructure upgrades necessary to support real-time, scalable, integrated payment flows. Otherwise, the game may move on without them.
