eBay Launches Pay by Bank in UK, Taps £4.4bn Market
EBAY•eBay has launched Pay by Bank in the UK, reflecting mainstream adoption of open banking with merchant demand at 91% and an estimated £4.4bn market opportunity. UK businesses could save up to £559m in transaction fees over five years across online, in-store, and billing channels.
1. eBay Introduces Pay by Bank
eBay has added Pay by Bank as a UK payment method, enabling customers to pay directly from their bank accounts. This move positions eBay alongside other major retailers embracing open banking to streamline checkout processes.
2. Strong Merchant Demand and Market Potential
A recent survey indicates 91% of merchants express strong demand for Pay by Bank, and the UK market opportunity stands at around £4.4bn. eBay plans to leverage this demand to improve conversion rates and reduce reliance on cards.
3. Projected Cost Savings for UK Businesses
Businesses across the UK could realize approximately £559m in savings over five years via reduced transaction fees and automated reconciliation: £331m online, £40m in-store, £110m from one-off bills and £78m from recurring payments.
4. Ecosystem Fragmentation and Future Use Cases
Several Pay by Bank schemes—each with distinct features, geographic coverage and dispute frameworks—are emerging, driving innovation but increasing integration complexity. Upcoming use cases include utility bills, e-money top-ups and transport ticketing.
