Pay-by-bank is a payment method that allows shoppers to transfer funds directly from their bank accounts without entering card details. However, it removes key consumer protections such as Section 75 of the Consumer Credit Act and chargeback protections that apply to credit and debit card payments. Martin Lewis, founder of MoneySavingExpert, warned about pay-by-bank in 2025 on social media, noting it offers little protection.
Major retailers are rapidly adopting pay-by-bank, with Amazon introducing it as a payment option for customers buying products or setting up Prime subscriptions. Pay-by-bank transactions in the UK exceeded 36 million in January 2026, up about 4% month-on-month. Pay-by-bank is offered by several well-known brands including Ryanair and Just Eat.
5 billion annually. Despite the loss of some protections, Consumer Rights Act protections still apply to pay-by-bank purchases if items are broken or not as described. Pay-by-bank works by selecting your bank from a list, logging into your bank's app or online banking, approving pre-filled payment details, and returning to the checkout for confirmation.
The exact percentage of UK online transactions conducted via pay-by-bank remains unknown, as does the number of consumer complaints or disputes specifically related to these payments. It is unclear which other major retailers beyond Amazon, Ryanair, and Just Eat are planning to adopt pay-by-bank, and no regulatory changes to enhance consumer protections have been announced.