Amazon has introduced a pay-by-bank payment method in the UK, allowing customers to complete purchases directly from their bank accounts as the retailer expands its range of checkout options.
The new feature enables shoppers to pay online through direct bank transfers rather than using cards or digital wallets. Pay by Bank connects customers to their banking app or online banking service to authorize transactions, typically using open banking infrastructure.
By adding the option, Amazon joins a growing number of merchants and payment providers in the UK offering account-to-account (A2A) payments, which are positioned as an alternative to traditional card networks.
Pay-by-bank transactions generally allow funds to move directly between bank accounts, reducing the number of intermediaries involved in processing. The method can also support real-time authorization and settlement, depending on the underlying banking rails.
For customers, the checkout flow typically involves selecting Pay by Bank, choosing their financial institution and confirming the payment within their banking app. No card details are required.
The UK has been one of the most active markets for open banking adoption since the regulatory framework was introduced in 2018, enabling licensed providers to initiate payments directly from consumer accounts with consent. Retailers have increasingly tested the model as a way to broaden payment choice and potentially lower acceptance costs associated with card processing.
Amazon has continued to diversify its payments mix in recent years, supporting cards, digital wallets, instalment options and alternative local methods across different markets. For instance, in India, it has recently introduced the UPI Circle feature, enabling its 100 million local user base to share payments. The addition of Pay by Bank in the UK reflects this broader strategy of offering multiple ways to pay at checkout.
At the same time, the e-commerce giant has recently discontinued its Amazon One palm payment project for retail, citing limited customer adoption and the closure of its Amazon Go and Amazon Fresh stores, focusing on widely used rather than experimental payment methods for now.
