Pay by Bank was supposed to be the awkward cousin at the payments family reunion. You know, the one promising bank-direct magic without cards or apps, but nobody quite trusted it enough to ditch their Visa. Then Trustly drops this: over 120 million users worldwide. That’s not hype. That’s a seismic shift under the feet of incumbents who thought debit cards had eternity locked down.
And here’s the kicker—it’s not just numbers. It’s architectural. Banks, once silos, now pipes for smoothly pulls. Trustly’s milestone screams that open banking isn’t some EU experiment anymore; it’s global plumbing rewiring how we pay.
What Everyone Expected (And Why They Were Dead Wrong)
Picture 2020. Fintech watchers bet on crypto moonshots or buy-now-pay-later bubbles. Pay by Bank? A niche for billers, maybe. Debit ruled 30% of U.S. retail, fueled by sheer familiarity—disputes you understand, funds vanishing on schedule. Credit dangled rewards. Why mess with bank logins?
But Trustly didn’t wait for permission. They onboarded Booking.com, AT&T, even the UK’s tax authority—their biggest open banking mandate ever. Users hit 120 million. UK alone? 15 million, a third of adults, up 34% year-over-year. Europe: 64 million. U.S.: 100 million granting data access. Expectations shattered.
“Surpassing 120 million users is a real milestone for Trustly and is proof to our central role in driving the momentum behind Pay by Bank globally,” said Johan Tjärnberg, Trustly’s CEO.
He’s not wrong. But let’s call the spin: this isn’t just Trustly flexing. It’s consumers voting with their logins for speed sans plastic.
Short paragraphs hit hard. This one? Barely a breath.
Now, peel back the layers. Pay by Bank’s genius lies in invisibility—no new apps, no accounts, just bank-like flows for bills, subs, transfers. PYMNTS nailed it: consumers skip the usual hurdles. Yet adoption stalls at 1.5% of U.S. transactions. Why? Habit. Debit’s grip isn’t tech; it’s muscle memory. Trustly’s user boom hints that’s cracking.
Why Does Pay by Bank’s Surge Matter Right Now?
Because architecture wins wars. Remember checks to cards in the ’80s? Everyone expected endless paper trails—bank lobbies packed Fridays. Then networks flipped the switch: instant auth, global reach. Pay by Bank echoes that. Open banking APIs turn banks into APIs, not fortresses. Trustly rides it, adding biometric Trustly ID in Europe, Scan & Pay for gaming. U.S. consumers? 30% tried it last year.
But here’s my unique take, one the press release glosses over: this mirrors the fax-to-email pivot. Faxes were ‘secure’ too, until email made them obsolete overnight. Pay by Bank could fax debit cards—faster, cheaper for merchants (no interchange), secure via bank verification. Bold prediction: by 2028, it claims 10% U.S. volume, forcing Visa to pivot or partner.
Skepticism check. Trustly’s PR paints paradise, but security lingers—30% of users cite it per PYMNTS. And default? Nah. Cards win disputes easier. Still, 120 million says momentum builds.
One sentence: Merchants love the fees.
Deeper still—global threads. UK’s 34% YoY? Open banking mandates forced it. U.S. lacks that, yet 100 million data grants signal readiness. Europe hums at 64 million. Trustly stitches it, but competitors lurk: Plaid, Tink. Who’s next?
Is Trustly Overhyping the Pay by Bank Revolution?
Look. CEO Tjärnberg calls it ‘market-leading.’ Fair. But dominance? Debit laughs—30% share. Pay by Bank: 1.5%. The real why: psychological moats. Consumers fear ‘bank data access’ like handing keys to strangers. Trustly counters with familiarity—no learning curves.
Yet architectural shifts demand trust leaps. Trustly ID biometrics? Smart. Scan & Pay? Gaming gold. But scale needs regulators. UK’s HMRC deal proves governments buy in. U.S.? CFPB watches. Prediction: mandates follow.
Wander a bit—think subscriptions. Netflix, Spotify pull direct? Chaos ends. No more ‘card declined’ emails. Businesses win.
And consumers? Faster refunds, fraud blocks at source. Cards feel clunky now.
The Roadblocks No One’s Talking About
Habit dies hard. PYMNTS says debit thrives on ‘knowing when funds leave.’ Pay by Bank? Instant, but opaque to newbies. Fix: education via apps like Trustly’s.
Competition heats. Stripe experiments, Adyen eyes in. Trustly leads users, but volume lags.
Still, 120 million isn’t fluff. It’s proof of concept.
🧬 Related Insights
- Read more: Bitcoin’s $1.3 Trillion Quantum Shield Race Begins Now
- Read more: FinovateSpring 2026: Hype Trains, Stablecoins, and the AI That’s Supposed to Run Banking Solo
Frequently Asked Questions
What is Pay by Bank and how does Trustly make it work?
Pay by Bank lets you pay merchants directly from your bank account using open banking APIs—no cards needed. Trustly handles the secure connection, verification, and instant transfers for over 120 million users.
Will Pay by Bank replace debit cards in the US?
Not overnight—debit holds 30% share via habit. But with 100 million U.S. users granting access, it could hit 10% by 2028 if security perceptions shift.
Is Pay by Bank safe for everyday purchases?
Yes, often safer—bank-level auth, no stored card data. Studies show 30% of users worry about security, but tools like Trustly ID (biometrics) address it.
