Stockholm based Focalpay announced the launch of the brand new Pay by Bank, the first combined account-to-account payment and checkout solution on the market. Focalpay is the first software provider in the world that has merged the payment, checkout and backoffice functionality in one solution – enabling retailers to cut costs, lower CO2 emissions and increase operational security.
Pay by Bank is currently available to brick and mortar retailers and e-commerce businesses in Scandinavia and is launched in the rest of EU region later in 2023 – fully in line with EU’s PSD2 strategy to offer mobile payments as an alternative to card payments.
With Pay by Bank, funds are collected directly from the payer’s account, and transferred directly to the merchant’s bank account. The feature can be integrated together with the Focalpay Checkout either via SDK or headless API, and can be either whitelabel or co-branded. Alternatively, retailers can opt to only use the Focalpay payment gateway and integrate it in their own checkout software.
Pay by Bank is beneficial from a GDPR perspective as it gives merchants control of the purchase data during payment, while protecting the customer privacy. Additionally, businesses using the function will get lower transaction fees as there are fewer intermediaries involved.
Focalpay’s Pay by Bank allows customers to add multiple accounts, select a favorite account to pay from. Furthermore, it enables users to to pre-select different accounts for certain purchase situations. To initiate a Pay by Bank payment, no app download is required – the customer simply scans a QR code for immediate onboarding.
Thanks to the new solution, funds are available on a merchant’s account faster than ever before. It enables retailers to keep track of liquidity, and provides a transparent overview of cash flow. When a customer pays, the funds are deducted from their account directly instead of being reserved, and during returns the customer gets the funds transferred directly into their account.

Birkir Veigarsson, CEO at Focalpay says;
“We’re thrilled to launch Pay by Bank in our commerce platform. Pay by Bank is instant, secure and frictionless with real-time updates for both purchases and returns. The solution will fundamentally change the payment process for retailers and consumers, as we are including Pay by Bank in our checkout and backoffice infrastructure. This offers further security and lower fees for merchants, while the end consumer can enjoy secure and seamless payments.”