A service provider that can initiate a payment on behalf of a user directly from their bank account. Think of it as a “digital bridge” between a merchant’s checkout page and your bank’s transfer portal.
The User Experience
- Selection: At checkout, you choose Pay by Bank.
- Redirect: You are sent to your banking app to authorize the specific amount.
- Completion: Once authorized, the PISP triggers the transfer.
Benefits
- Lower Fees: Merchants often prefer PISP payments over credit cards because they bypass expensive card networks.
- Speed: Transfers usually happen via Instant Payment schemes.
- No Manual Entry: You don’t have to type in long IBANs or sort codes; the PISP automatically fills them in.