Radial and Link Money Partner on Pay by Bank Offering

eCommerce solutions firm Radial is partnering with open banking payment platform Link Money on a pay by bank tool for merchants.

The tool uses Link Money’s proprietary artificial intelligence/machine learning model to send payments, eliminating the uncertainties associated with traditional payment methods, Radial said in a Tuesday (Feb. 13) news release.

“This is an example of a forward-thinking partner taking initiative over and above their existing payment providers to implement a payment method that merchants are asking for. By working with Radial, we will be able to deliver our cost-effective, more secure, Pay by Bank payment method to their merchants,” said Shaun Vanderkaap, vice president of strategy at Link Money.

Radial said the solution can boost merchant profitability by reducing transaction fees by 70-80%, and reduces the risk of fraudulent activity since it requires customers to authenticate payments in their banking app.

Additionally, pay by bank eliminates the problem of payment card expiration and can save merchants time spent on revenue recovery efforts, the release said.

“Open banking is emerging as a transformative force in the eCommerce industry, offering a secure and appealing alternative to traditional payment methods for merchants and consumers,” said Yvan Gilliard, senior vice president of payment solutions and omnichannel at Radial.

“We are excited about the potential to leverage open banking, as it aligns with our vision and provides a refreshing and extremely user-friendly experience for all stakeholders,” Gilliard added.

The widespread adoption of pay by bank may come sooner than expected.

That’s according to Rahul Hampole, head of payments at Plaid, who said the embrace of the payment method depends on use cases that are offered, during an interview with PYMNTS posted on Feb. 6.

Hampole said for bank-linked payments to succeed, they need to be as simple as simple as swiping a card.

“Merchants should feel it’s very easy to slot this in as part of their checkout flows or other experiences that they’re building,” he said. “You see lower fees, which from a merchant’s perspective reduces operational costs.”

Hampole said that pay by bank has the potential to become a “fantastic, embedded experience … and it won’t feel like a heavy lift to pay through your bank account.”