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🇬🇧 United Kingdom Pay by Bank (Europe) Payment Integration Guide

Pay by Bank (Europe) is not a specific brand but a generic term bundling together account-to-account (A2A) transfer payments across European countries. It is the category to consider when a merchant selling to both the United Kingdom and continental Europe wants to cover them through a single transfer-payment path instead of adding separate country-specific methods one by one.

When to consider Pay by Bank (Europe) payments in the United Kingdom

Across Europe, including the United Kingdom, account-transfer-based payment is growing as an alternative to cards. The UK uses its own open banking framework (FCA oversight, more than 10 million users) and Faster Payments instant transfer as infrastructure, while the EU uses PSD2-based A2A and SEPA transfers. Pay by Bank is an approach that bundles these different pieces of infrastructure into a single "pay with my bank" experience on the checkout screen.

If you're looking only at the UK as a single market, the United Kingdom Open Banking payment page is the more specific reference. But for Korean merchants selling simultaneously into multiple European markets — the UK alongside Germany, France, and others — covering transfer payments collectively under the Pay by Bank family, rather than adding country-specific methods one by one, reduces integration and operational burden.

Generic term for A2A account transfer
Nature
Open banking / Faster Payments
UK-side basis
PSD2 / SEPA transfer
Europe-side basis
None (separate dispute process)
Chargebacks

Basic flow of a Pay by Bank (Europe) payment in the United Kingdom

When a consumer selects "pay by bank" and picks their bank, they are taken to their bank app or online banking to approve the transfer. UK transactions are routed using open banking APIs and Faster Payments, while eurozone transactions use PSD2 APIs and SEPA transfers, matching each country's infrastructure, and the bank-app authentication satisfies either UK-SCA or EU SCA requirements as applicable. Hecto Financial collects the approved funds in the local currency (GBP for UK transactions).

Hecto Financial's Pay by Bank (Europe) coverage

Through Hecto Financial, UK and European transfer payments can be reviewed together on the basis of a Korean entity. Since bank coverage and support scope differ by country, a prior consultation based on your list of target sales countries is recommended before signing a contract.

※ This section describes the general support process and does not guarantee that a specific merchant can actually integrate. Please confirm exact coverage and fees through consultation.

What to confirm before applying and integrating

  • Business registration country

    Confirm whether a contract is available on the basis of a Korean business registration

  • Sales channels

    The integration method and priority vary depending on your online sales channel mix — owned storefront, marketplaces, mobile app, and so on

  • Product categories

    Check in advance whether your product category falls under restricted industries per the Pay by Bank (Europe) operator's merchant policy

  • UK/EU dual framework

    As a non-EU country, the United Kingdom has open banking regulation separated under the FCA framework. If selling into both the UK and the EU, requirements under both regulatory regimes must be confirmed

Settlement currency, settlement cycle, and refund terms

GBP funds from UK consumer transactions (or the respective local currency for continental European transactions) are collected and converted by Hecto Financial, then consolidated and settled to the Korean merchant in a single contracted currency — a choice of USD, KRW, or JPY. Even when selling across multiple countries, having settlement consolidate into a single currency is an operational advantage. Transfer methods have no chargebacks, but in exchange, refunds are handled through a merchant-initiated return transfer, and sales into the UK need a process in place to handle the 14-day right of cancellation.

United Kingdom Pay by Bank (Europe) payment FAQ

QHow does this page differ from the Open Banking page?
The UK Open Banking page covers things from the perspective of the UK's domestic framework — the FCA and CMA system — while this page covers transfer payments across both the UK and continental Europe from a broader, generic perspective. If you're entering the UK as a single market, use the former; if you're entering multiple countries at once, use this page as your reference.
QIf multiple countries' currencies are involved, how is settlement handled?
Funds are collected per country in the local currency — GBP, EUR, and so on — and Hecto Financial converts and consolidates them into a single settlement in whichever of USD, KRW, or JPY was chosen in the contract. Payouts are not split across different currencies by country.
QCan transfer payments across multiple European countries be added without a local UK entity?
Integration through Hecto Financial can be reviewed on the basis of a Korean entity. However, since coverage varies by country and bank, support scope needs to be confirmed based on your list of target sales countries.
QTransfer payments have no chargebacks — how are disputes handled?
Without a card-style chargeback system, the risk of unfair cancellations is low, but consumer complaints and misdirected payments must be handled through the merchant's refund process (return transfer) and each country's dispute procedures. It's important to have a refund process and customer support standards in place in advance.

Official sources on United Kingdom payments

Inquire about Pay by Bank (Europe) payment integration in the United Kingdom

Hecto Financial's team will work with you to review the right payment method mix for the UK market.

Contact us