The Shift Towards Pay by Bank in Consumer Payments
This chapter explores the shift from cash to digital bank payments, particularly among younger consumers in the U.S. It emphasizes the importance for merchants to adopt 'pay by bank' options to meet the evolving payment preferences driven by financial management concerns.
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In This Episode
Pay by bank is gaining momentum in the U.S., it’s a natural evolution of how we pay with funds from our bank accounts. What will it take to get more people to use it and what about readiness for different use cases? Listen as host Brett King, Eric Sager, Plaid’s COO and Trevor Nies, Adyen’s SVP, Global Head of Digital discuss the state of pay by bank, what is driving it in the U.S., the value it delivers, the next segments to adopt, and how key challenges are being overcome to make it good for consumers and for businesses. Will we start seeing pay-by-bank in everyday e-commerce experiences? Listen to our latest episode of Breaking Banks to find out!
Chapter 1: [00:00] Introduction and Global Payment Trends
The hosts introduce the episode and explore the growing momentum of pay-by-bank systems worldwide, focusing on their adoption in emerging markets like Brazil and India.
Chapter 2: [05:20] Meet the Guests and U.S. Market Overview
Eric Sager from Plaid and Trevor Neece from Adyen discuss their roles and share insights into the complexities and opportunities in the U.S. payments ecosystem.
Chapter 3: [12:40] Lessons from Emerging Markets
Exploration of real-time payments systems such as PIX in Brazil and UPI in India. Insights into how these systems could shape the future of payments in the U.S. and Europe.
Chapter 4: [22:15] The Growing Appeal of Pay by Bank
Deep dive into the benefits of pay-by-bank for consumers and merchants, including lower costs, reduced churn, and access to underserved populations.
Chapter 5: [30:50] The Partnership Between Plaid and Adyen
Details on the strategic collaboration between Plaid and Adyen, its objectives, and how it simplifies merchant integration while offering value to consumers.
Chapter 6: [39:30] Overcoming Adoption Barriers
Discussion on the challenges of implementing pay-by-bank in the U.S., including consumer trust, branding, and incentives, and how to drive adoption across generations.
Chapter 7: [48:10] AI and the Future of Payments
Speculation on how AI will transform payments, from contextual credit to automated personal finance management, and its potential integration with pay-by-bank systems.
Chapter 8: [55:50] Wrapping Up and Future Outlook
Guests reflect on the potential for pay-by-bank to reshape the payments landscape, their plans for the partnership, and their excitement for the future.
