Banking service provider Stripe to initiate the rollout of "Pay By Bank" feature in France and Germany, in collaboration with TrueLayer.
In a significant move for the European payments landscape, Stripe has launched its Pay by Bank service in France and Germany, in partnership with TrueLayer. This expansion follows the success of the service in the UK and leverages TrueLayer’s open banking infrastructure to facilitate direct bank account connectivity across Europe, enabling real-time payments with improved conversion rates and enhanced security [1].
The integration of Stripe and TrueLayer in France and Germany is expected to make transactions faster, safer, and more affordable for businesses. In fact, French and German merchants using the TrueLayer Pay by Bank network have already seen an average 42% uplift in conversion rates, indicating more customers completing their purchases using this payment method [3].
Moreover, the partnership is poised to drive significant growth in Pay by Bank transactions within the European Union, with projections suggesting that annual volumes will reach 30 billion by 2028 [1]. In France and Germany, the bloc’s largest economies, the service is expected to play a significant role in this growth.
Currently, TrueLayer processes approximately 60% of all Pay by Bank transactions in France and 30% in Germany, underscoring its strong presence and growing customer base in these markets [1]. Major businesses like Ryanair have already adopted Pay by Bank, further testament to its growing popularity. Annually, TrueLayer processes €2bn in Pay by Bank transactions in France and €1.4bn in Germany [1].
However, consumer adoption presents challenges. Research shows pay-by-bank usage is notably higher among younger demographics, but many older consumers remain reluctant to switch from traditional debit cards or digital wallets [2]. This demographic divide highlights the need for ongoing consumer education and a broader shift in payment habits.
Pay by Bank payments typically use biometric methods, streamlining the checkout experience for businesses and bypassing the need for consumers to enter card details. This, coupled with the improved conversion rates and reduced transaction fees, makes Pay by Bank an attractive option for merchants seeking to improve their performance and cash flow [2].
In summary, Stripe’s collaboration with TrueLayer is a key enabler for Pay by Bank’s growth in France and Germany, driving improved merchant performance and underpinning the broader adoption of open banking payments in these leading European economies.
| Aspect | France and Germany Pay by Bank | Stripe-TrueLayer Partnership Contribution | |------------------------------|--------------------------------------------------------|-----------------------------------------------------| | Projected EU Pay by Bank Volume by 2028 | 30 billion transactions annually (EU-wide) | N/A | | Merchant Conversion Uplift | +42% average uplift in France and Germany | TrueLayer infrastructure increases conversions | | Consumer Adoption | Strong among younger users (18-29), slower among older | Stripe enables seamless bank connectivity and real-time payments | | Merchant Benefits | Lower transaction costs, improved cash flow, enhanced security | Powered by TrueLayer’s open banking infrastructure |
[1] Stripe. (2023). Stripe Expands Pay by Bank to France and Germany. Retrieved from https://stripe.com/en-gb/press-center/latest/stripe-expands-pay-by-bank-to-france-and-germany [2] TrueLayer. (2022). TrueLayer and Stripe Partner to Power Pay by Bank Across Europe. Retrieved from https://true layer.com/blog/truelayer-and-stripe-partner-to-power-pay-by-bank-across-europe [3] TrueLayer. (2022). TrueLayer's Pay by Bank Service Delivers 42% Uplift in Conversion Rates for Merchants. Retrieved from https://true layer.com/blog/truelayer-s-pay-by-bank-service-delivers-42-uplift-in-conversion-rates-for-merchants
The Stripe-TrueLayer partnership is anticipated to revolutionize finance in France and Germany, as businesses witness faster, safer, and more affordable transactions through the Pay by Bank service. This partnership is expected to contribute significantly to the projected 30 billion Pay by Bank transactions in the EU by 2028, making it an instrumental player in the growth of open banking payments within these leading economies.
