41% of Pay by Bank Users Want to Pay by Bank Beyond Retail

Most consumers in the United States aren’t saying no to pay by bank. They’re saying, “What’s that?”

The simple knowledge gap, more than cost or convenience, may be the reason open banking payments have yet to catch on in the U.S. The PYMNTS Intelligence report “What Consumers Need for Pay by Bank to Catch On,” published in collaboration with Trustly, finds that 56% of consumers say they are not even aware that the option exists.

The figure dwarfs every other reason consumers cite for not trying the service, including worries about entering banking information online or a preference for debit cards.

The report, based on a July survey of 2,225 U.S. consumers, offers a window into why adoption remains limited despite high levels of intrigue among young and high-income groups.

The data finds that pay by bank, often described as a direct-from-account alternative to card payments, is a solution waiting for a problem. Consumers show they can be swayed by discounts, loyalty benefits and cash back offers. However, those incentives don’t matter if half the market doesn’t realize the option is on the table.

Findings at a Glance

The report groups consumers into four personas: early adopters (6%); interested (18%); intrigued (22%); and resistant (53%). Resistance often stems from indifference rather than hostility. When incentives are introduced, attitudes shift. Among those who initially say they have no interest in pay by bank, about two-thirds soften once discounts or rewards are in play.

Key findings include:

Eighty-one percent of consumers are intrigued when offered incentives, compared with 47% without them.

Seventy-two percent of interested consumers say even a small discount would increase their likelihood of using pay by bank.

Forty-one percent of current users say they would consider pay by bank for ridesharing, signaling the payment method’s strongest pull may lie outside traditional retail.

The numbers underscore the appeal of price breaks, but they also highlight that incentives can only move the needle if consumers first recognize the product.

The report suggests that pay by bank’s best chance for traction may lie in sectors where consumers already link accounts directly, such as betting, ridesharing or investment transfers.

Young users, particularly Generation Z and millennials, show the highest willingness to experiment. More than 40% in both groups express interest in using the method for moving money between bank and brokerage accounts.

Ease of use is another understated factor. Nearly 4 in 10 current users say the simplicity of pay by bank is its main draw. For resistant consumers, that benefit is often invisible. Only 1 in 5 who do not use the method view convenience as a potential selling point.

The research points to a future in which pay by bank could become more than a niche.

The combination of targeted incentives, clear communication and visible use cases may push adoption past its current early-adopter phase. The task, however, is to raise awareness while also ensuring that discounts and loyalty programs are compelling enough to override ingrained habits like pulling out a debit card.

For now, the hurdle isn’t just whether the incentives are rich enough. It’s whether consumers even know there’s something to be incentivized.