Study Finds Trust and Rewards the Missing Links to Pay by Bank Adoption

“Pay by Bank: Consumer Adoption Hinges on Security Concerns,” a PYMNTS Intelligence and Trustly collaboration, explores the forces shaping consumer trust, confidence and conversion in one of the most promising innovations in digital payments. Based on a survey of 2,071 United States consumers conducted from June 20, 2025, to June 30, 2025, the report finds that Pay by Bank has achieved recognition, but not routine use. Nearly three in 10 consumers have used it in the past year. However, the payment method still represents just 1.5% of all U.S. retail transactions. The findings reveal a clear paradox. Consumers want simplicity, speed and transparency in payments, yet many hesitate to use the technology that delivers that.

Security perception, not performance, is the key hurdle. Nearly half of debit card users who have not adopted this payment method say they believe that entering their bank credentials is less secure than using a card—even though Pay by Bank transactions never expose those credentials to merchants. Incentives also matter. Consumers have been trained to expect rewards, cash-back and buyer protections from card-based systems. Without equivalent benefits, even a friction-free payment experience can fail to inspire loyalty. The opportunity is enormous. If even a small fraction of the $1.6 trillion in annual debit card spending shifts to Pay by Bank, it would represent a major gain for consumers and merchants seeking lower costs and real-time settlement.

In this report, learn how:

Education can unlock adoption. Clearer communication about data privacy and security standards can help demystify Pay by Bank and earn consumer confidence.

Personalized incentives drive conversion. Tailored rewards, cash-equivalent savings and buyer protections can nudge consumers toward habitual use.

FinTech innovation can redefine trust. Aligning Pay by Bank with open banking security, instant transfers and transparent pricing can turn a niche payment method into a mainstream movement.

Download the Report Pay by Bank: Consumer Adoption Hinges on Security Concerns

About “Pay by Bank: Consumer Adoption Hinges on Security Concerns”

“Pay by Bank: Consumer Adoption Hinges on Security Concerns” is based on a survey of  2,071 U.S. adult consumers conducted from June 20, 2025, to June 30, 2025. The report examines individuals’ adoption and perception of this payment method. Respondents were recruited to reflect U.S. Census Bureau population totals across gender, age, education and income.