Small Tweaks, Great Output: What Merchants Can Do to Maximize Pay By Bank Conversion

Open banking payments offer merchants lower fees, instant access to funds, and no chargeback issues. However, in many markets, it's a relatively new option, and shoppers often stick to familiar methods like cards or PayPal. Awareness is growing, especially in Central and Eastern Europe, but there's still an education curve to overcome. To encourage users to choose Pay by Bank, merchants can make a few UX tweaks.

First, use clear button labels. Vague terms like "Bank transfer" or "Open Banking" can confuse users, leading to lower conversion rates. Instead, use "Pay by Bank" as it's becoming a recognizable standard. When placed alongside "Pay by Card", the choice appears balanced and obvious.

Second, display bank logos near the Pay by Bank option. Trust signals like these help users feel secure. Familiar bank marks act as trust badges, assuring users that their specific institution is supported.

Third, consider the placement of the Pay by Bank option. Hiding it below the fold or on mobile devices can cause users to overlook it. Ideally, place it first in markets where it's known, and second in markets where awareness is still growing.

Fourth, avoid overwhelming users with too many options. In many European markets, the top 3-5 banks cover most users, so a short preview suffices. Show 3-5 banks prominently, and offer an "show more" option for the rest.

Finally, ensure button colors and text are consistent with your site's design and meet accessibility guidelines. This maintains a polished look and prevents users from feeling excluded. These simple tweaks can make Pay by Bank a more natural and attractive option for customers, increasing its conversion rates.