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Payment by bank transfer is still far from competing with a card

In retail, what is the state of adoption of payment by bank transfer (or Payment Initiation) as an alternative to bank cards, and especially to Visa and Mastercard? Between B2C and B2B payments, in which purchasing journeys does it make the most sense? Although there are still obstacles to a rollout, payment initiations are proving to be an effective complement to a card. Several payment companies are industrialising marketing of their solution.

Through Aude Fredouelle. Published on 21 November 2022 à 17h18 - Update on 21 November 2022 à 23h44

Introduced by PSD2, payment initiation (or PISP of Payment Initiation Service Provider) opens new possibilities to replace card payments with bank transfers. When they pay on a website, customers are redirected to their banking application, where they authenticate themselves to validate a transfer. In a store, they receive a payment link, or scan a QR code, that links to a banking app. The transfer triggered can be a classic transfer but also an instant transfer (SCT Inst), which has the advantage of ensuring immediate payment to the retailer. But almost 2 years after the start of PSD2, at the end of 2020, how far has this payment method been adopted ?

Many obstacles

The market now agrees that payment initiation will not replace bank cards in retail, at least not in the short or medium term. “Payment by credit transfer is much more complicated than we might have imagined,” admits Pierre-Antoine Vacheron, C.E.O. of the BPCE Group. “First of all, it does not include consumer protection. Instantaneous transfers are irrevocable and that is a major obstacle. Secondly, unlike electronic payment flows, transfer flows are more complicated to trace for a retail company. As a result, the retailer often does not have payment confirmation. A third obstacle is how it is difficult to achieve good ergonomics by ensuring that the references and IBAN are entered in a standard structure. The “one-click” payment solutions that exist with a card are not available for transfers. Finally, many banks charge individuals around €1 for such payments. Not to mention that “the open banking API standard is not always respected”,…

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