Amazon: Payment Options to Include Pay-by-Bank and Prime

In a move that aligns Amazon with consumers’ digital banking preferences and modern lifestyles, it has announced the introduction of its 'Pay by Bank' function for UK customers.

Essentially, Pay by Bank gives shoppers the option of completing a purchase on the Amazon UK website without entering card details by establishing a secure connection between consumers and their banks.

The customer’s own banking app will provide a thick layer of security as it will use the consumer’s own biometric authentication or PIN verification.

This helps to protect financial information in addition to providing consumers with direct control over each transaction.

Amazon claims also that the service offers an increased efficiency in refund processing, as funds are returned to customer bank accounts within minutes after the receipt for returned items is confirmed. 

As pay-by-bank involves direct bank-to-bank communication, it excludes physical cards and their details from the communication. Customers then have the option to select Pay by Bank at checkout, then verifying the purchase by scanning a QR code in their chosen bank’s app. 

Ultimately, Prime customers have no need for providing or updating card information, marrying consumer expectations for a more progressive approach towards digital finance. 

Jonathan Boumphrey, Country Manager for UK & Ireland at Amazon: “Pay by Bank gives customers a new payment option, and a number of benefits including faster refunds. “It takes just seconds to setup and is part of our continuous work to enhance the shopping experience for customers and provide even more ways to pay securely.”

The announcement complies with the UK’s National Payment Vision Framework, which works in efforts of fostering competitive payment options.

The framework also supports the adoption of account-to-account payments in e-commerce, with sights of further boosting the UK’s strategy for fostering efficient and secure payments.

Customers can connect accounts with multiple banks, for example, one with NatWest and one with Barclays to their Amazon accounts and Pay by Bank. If they select the option, every purchase will be redirected to their bank.

“The streamlined setup process takes just seconds, with customers selecting their bank from a list that includes more than 99% of UK banks," Jonathan adds.

“Pay by Bank also provides a checkout experience that customers will find familiar if they use mobile banking apps, but with the added advantage of expedited refunds and permanent payment credentials.”

Meanwhile, Amazon’s A-Z Guarantee covers all purchases made using Pay by Bank, giving shoppers greater peace of mind. The protection includes situations where items don’t match up with description provided, as well as if items don’t arrive. 

UK Payment Services Regulations set out clear standards for the protection of customers using Pay by Bank for up to 13 months.