Last week, Nacha formed a project team to explore the concept of pay by bank and address operational, risk, and educational issues.
There is confusion surrounding pay by bank, as many consumers are unfamiliar with it and its benefits, leading to resistance in adopting the payment option.
Pay by bank encompasses various payment schemes, including direct debit, real-time credit transfer, and peer-to-peer transactions, depending on the payment type.
To encourage adoption, merchants can incentivize pay by bank with cash back and discounts, while providers can leverage open banking technology to innovate payment options.