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Radial and Link Money Launch Revolutionary ‘Pay by Bank’ Payment Solution for Ecommerce


The digital payments landscape is witnessing a transformative collaboration with Radial, a renowned leader in omnichannel commerce technology and operations, partnering with Link Money, a pioneering force in the open banking sector. This partnership heralds the launch of a groundbreaking ‘pay by bank’ offering, designed to streamline online payments for global merchants. This initiative marks a significant milestone in the evolution of ecommerce, promising to enhance the efficiency and security of digital transactions.

Background Information

Radial: Radial, headquartered in King of Prussia, Pennsylvania, is a globally recognized provider of ecommerce solutions, specializing in omnichannel technology and operations. Since its inception, Radial has been at the forefront of ecommerce innovation, offering a wide range of services including order management, payment processing, and fraud prevention to a diverse clientele spanning various industries.

Link Money: With its headquarters situated in the vibrant fintech hub of London, UK, Link Money has emerged as a leading figure in the open banking landscape. Its platform leverages the power of open banking to facilitate seamless, secure payments directly from bank accounts, catering to a broad spectrum of customers, from fintech startups to established financial institutions.

Details of the Partnership

The strategic alliance between Radial and Link Money is driven by a shared vision to revolutionize the payment experience for merchants and consumers alike. By integrating Link Money’s cutting-edge open banking technology with Radial’s robust ecommerce platform, the partnership aims to deliver a ‘pay by bank‘ solution that not only reduces transaction costs but also enhances payment security. This collaboration is a testament to both companies’ commitment to innovation and their role in shaping the future of digital commerce.

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Features of the ‘Pay by Bank’ Offering

Pay by Bank solution by Radial & Link Money

The ‘Pay by Bank’ method enables customers to make online payments directly from their bank accounts, streamlining the payment process significantly. This method eliminates the need for customers to enter credit card details or remember passwords, offering a seamless and secure checkout experience. The payment process involves customers selecting the ‘Pay by Bank’ option at checkout, choosing their bank, and authenticating the payment through their banking app or website, using familiar security measures like passwords or biometric verification​​.

The technology behind ‘Pay by Bank’ leverages open banking platforms, allowing for a direct and secure connection between customers’ bank accounts and merchants’ payment processors. This not only simplifies the transaction process but also reduces the risk of fraud, as payments are authenticated directly by the customers’ banks​​.

Market Analysis

In the rapidly evolving ecommerce sector, ‘Pay by Bank’ solutions are emerging as a valuable alternative to traditional payment methods, addressing several key merchant challenges. Traditional card payments often come with high transaction fees and a risk of fraud, which ‘Pay by Bank’ aims to mitigate. By bypassing traditional payment rails and leveraging open banking, ‘Pay by Bank’ can offer significantly lower transaction costs and enhanced security. This method is particularly appealing in markets like the U.S. and Europe, where open banking regulations and consumer preferences are driving a shift towards more secure and cost-effective payment solutions​​.

Benefits for Merchants

The primary benefits of adopting ‘Pay by Bank’ for merchants include reduced transaction fees and enhanced payment security. Transaction costs can be up to 70% lower than traditional credit card payments, making it an economically attractive option for merchants. Additionally, the direct bank authentication process reduces the risk of fraud, providing an extra layer of security for both merchants and consumers. The simplified checkout process also addresses common issues like cart abandonment, with a more streamlined payment experience likely to increase conversion rates for online retailers​​.

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Moreover, integrating ‘Pay by Bank’ can enhance a merchant’s payment ecosystem by providing customers with a preferred and familiar payment option, further enhancing customer satisfaction and loyalty. The adoption of such innovative payment methods not only positions merchants as leaders in ecommerce but also aligns with the shifting consumer preferences towards more secure and convenient online payment solutions​​.

Implementation and Adoption

The implementation of ‘Pay by Bank’ solutions by merchants involves integrating these payment options into their existing payment systems. This process varies depending on the specific ‘Pay by Bank’ product being used. For instance, Mastercard’s Pay by Bank App requires partnering with a bank or payment service provider that processes Mastercard transactions, whereas solutions like GoCardless’ Instant Bank Pay, powered by Open Banking, offer more direct integration options for merchants. Merchants can sign up for an account with GoCardless to use Instant Bank Pay, which is available for customers of any UK or German bank supporting Open Banking. The implementation process involves technical integration, possibly through APIs, to connect the merchant’s checkout system with the ‘Pay by Bank’ service, ensuring a seamless transaction flow from the customer’s bank account to the merchant’s payment gateway​​.

Adoption rates for ‘Pay by Bank’ are influenced by various factors, including consumer familiarity and trust in the payment method, the perceived convenience and security it offers, and incentives provided by merchants to encourage its use. Significant savings over traditional payment fees and a push for more secure and direct payment methods are driving interest among both merchants and consumers. Efforts to educate consumers and provide them with incentives, such as discounts for using ‘Pay by Bank,’ are key strategies in increasing adoption​​.

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Future Prospects

The partnership between financial technology providers and merchants for ‘Pay by Bank’ offerings is expected to evolve with advancements in open banking and payment technologies. Future enhancements may include broader international support, faster transaction processing, and deeper integration with financial institutions’ and merchants’ systems. As open banking becomes more prevalent, we can expect an increase in the adoption of ‘Pay by Bank’ services, further reducing reliance on traditional credit and debit card payments.

These developments could significantly influence ecommerce and fintech trends, leading to more personalized and secure payment experiences for consumers. The growth of ‘Pay by Bank’ is also anticipated to encourage innovation in financial services, with potential impacts on how merchants manage transactions and interact with their customers.


The ‘Pay by Bank’ solution, facilitated by the partnership between Radial and Link Money, represents a significant advancement in ecommerce payments. By leveraging open banking technology, this offering provides a more secure, efficient, and cost-effective alternative to traditional payment methods. Its implementation and adoption by merchants are supported by the simplicity of integration and the potential for reduced transaction costs and improved security. As this payment method gains traction, we can expect it to play a pivotal role in shaping the future of digital payments, driving further innovations in the ecommerce and fintech sectors. The continued evolution of this offering and its adoption across the market will be crucial in determining its long-term impact on the payments landscape.

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