Deloitte's research indicates that offering perks is essential for the widespread acceptance of pay-by-bank systems. With a new report showing 72% interest jump with incentives, banks are urged to incentivize users to make the payment method an acceptable alternative to credit cards.

Consulting firm Deloitte suggests banks must persuade merchants and consumers of pay-by-bank's viability by offering incentives. A recent PYMNTS Intelligence and Trustly report, "What Consumers Need for Pay by Bank to Catch On," shows a 72% increase in consumer interest when discounts and cash back are offered, even among those initially uninterested. "Strategic incentives, particularly discounts and cash-back offers, significantly boost interest even among the initially resistant," the report states. Pay-by-bank allows shoppers to directly withdraw money from their bank accounts to pay merchants, often through electronic payment rails like Same-Day ACH or the RTP network. Despite its potential to decrease costs for businesses and ease payments for shoppers, 56% of consumers are unaware of pay-by-bank. This lack of awareness, coupled with the need to compete with established credit card systems, necessitates incentives to drive adoption. Consumers see value in using pay-by-bank beyond retail, such as for ridesharing and betting, with 41% of users expressing interest. Experts predict that increased awareness and strategic incentives will drive the adoption of pay-by-bank in the coming years.