Crypto: Germany Benefits from Tink and Coinbase Pairing

Tink, A Visa Solution, has partnered with Coinbase to introduce Pay by Bank functionality for cryptocurrency purchases in Germany.

The collaboration allows Coinbase users to buy and sell crypto directly from their bank accounts without manual data entry.

The payment method leverages open banking infrastructure to enable account-to-account transfers through API’s that connect banks with authorised payment providers under the European Union's Revised Payment Services Directive.

Thomas Gmelch, Head of Commercial, Central Europe at Tink, said: "This partnership adds a new service for Coinbase users in Germany, giving them more choice in how they manage their crypto purchases. 

“Having a Pay by Bank option makes it possible to check out quickly and securely on a mobile device, directly from a bank account. 

“We're proud to give individuals, businesses and developers the tools they need to support the next wave of crypto adoption."

The implementation builds on Tink's existing infrastructure, which maintains connections to 13,000 financial institutions across 20 markets.

The Stockholm-based platform, acquired by Visa in 2021, processes approximately US$108m in daily payment initiation services and serves 10,000 merchants through payment service provider partnerships.

In an exclusive interview with FinTech Magazine at Pay360, Ian Morrin, Head of Payments at Tink and CEO of UK Operations, discussed the company's remarkable growth trajectory and the evolving landscape of open banking payments.

Market positioning for German users

Denny Morawiak, Managing Director of Coinbase Germany, adds: "We are thrilled to introduce Pay by Bank for our customers in Germany.

“The partnership with Tink is the latest step in making it easier to securely access the crypto economy.

“The partnership is part of our constant efforts to expand our service offering in Germany and underscores our commitment to being the most trusted and compliant offering in the German market."

The partnership arrives as both companies expand their presence in the German market.

Earlier in the year, Tink partnered with Vodafone Germany and Adyen to launch Pay by Bank services for telecommunications customers.

The Vodafone implementation enables prepaid customers to top up accounts and postpaid subscribers to settle balances through direct bank transfers rather than traditional card payments.

Coinbase achieved a significant milestone in May when it became the first cryptocurrency company included in the S&P 500 index.

The San Francisco-based exchange platform has consistently pursued regulatory compliance as a core strategy since its 2012 founding.

Technical implementation 

Pay by Bank eliminates the need for card details or third-party payment intermediaries by connecting directly to customers' bank accounts through secure APIs.

The technology allows users to complete transactions in a few taps on mobile devices, reducing friction in the checkout process.

The mobile-first approach addresses consumer preferences for streamlined payment experiences, particularly in cryptocurrency transactions where speed and security remain priorities.

For Coinbase, the integration provides German customers with an alternative to traditional payment methods for crypto purchases.

The platform has expanded beyond basic exchange services to include institutional custody, staking and educational initiatives.

Open banking trajectory

The partnership reflects broader trends in European payments where account-to-account transfers compete with traditional card-based transactions.

Pay by Bank adoption has accelerated across multiple sectors, from telecommunications to e-commerce, as merchants seek lower-cost payment alternatives.

Industry data suggests merchants and consumers are becoming increasingly comfortable with bank-based payment methods as implementation becomes more sophisticated.

Tink has invested in developing appropriate messaging and user flows that build consumer confidence, particularly in markets where Strong Customer Authentication requirements add complexity.

The company's approach focuses on creating intuitive experiences that maintain security standards whilst simplifying the payment process.

The German market represents a strategic priority for both organisations, combining a mature banking infrastructure with growing cryptocurrency adoption.

Current cryptocurrency markets 

For payment service providers and merchants, the partnership demonstrates how open banking infrastructure can enable new service offerings without significant additional integration work.

The technology reduces transaction costs compared to card-based payments whilst providing faster settlement times.

Financial institutions exploring cryptocurrency services can leverage established open banking connections rather than building bespoke payment rails.

The model offers businesses a framework for adding cryptocurrency payment acceptance without assuming the technical complexity of direct blockchain integration.

As regulatory frameworks continue to evolve across European markets, partnerships between established financial infrastructure providers and cryptocurrency platforms may accelerate mainstream adoption of digital assets.