Instant payment in online retail: how does "Pay by Bank" work and for whom is it worthwhile?
Instant payment has now also arrived in Switzerland - allowing merchants to receive payments from Germany and Austria in real time. With "Pay by Bank", merchants also benefit from lower fees, fewer abandoned purchases and a simpler checkout.
Direct transfer in real time, without a credit card? Instant payment has long been standard in Germany and Austria. Many online shoppers prefer this payment method and no longer want to do without it - even when shopping abroad.
Fortunately, this simple method of payment has now also arrived in Switzerland. Especially for online merchants with customers from Germany or Austria, it is worth activating "Pay by Bank". Direct bank transfer offers a great opportunity to improve the payment process in your online store, save costs and generate more sales.
Payrexx also makes integration so easy that merchants can use the standards of the future today and benefit from satisfied customers in the long term.
What is Instant Payment and how does Pay by Bank work?
Instant payments or "Pay by Bank" are in short: payments in real time directly from one bank account to another bank account, without delay.
Payment from your customers' bank account to your merchant account with Payrexx takes just a few seconds instead of hours or days. And payment with Pay by Bank is possible around the clock, 365 days a year, regardless of bank opening hours.
How exactly does a payment with Pay by Bank work?
Buyers who wish to pay with Pay by Bank simply select this payment method in the checkout and are then forwarded directly to their bank's e-banking, where they can confirm the payment. The money is then transferred to the merchant's account within a few seconds.
The only requirement is that the customer's bank account must support instant payment (already standard at most banks in Germany and Austria).
How does instant payment benefit Swiss online retailers?
Many Swiss online stores also have customers from Germany and Austria. Both countries are strong e-commerce markets and the desire for convenient and fast payment methods is growing. Instant payment in particular is popular with many customers because:
you don't have to enter any card details: The payment process is faster and more secure
no app or registration is necessary: anyone with a bank account already has e-banking anyway
everything is settled immediately: no outstanding amounts or forgotten invoices
For Swiss retailers with customers from these countries, this means fewer abandoned purchases, lower costs and less effort.
For whom is integration worthwhile?
The Pay by Bank payment method is particularly interesting for you as a merchant if you have German or Austrian customers, sell internationally or plan to do so, want to save on credit card fees or are generally looking for a faster checkout process.
Example: You run an online store with sports nutrition or craft supplies and receive many orders from Germany. If you offer Pay by Bank, you offer your customers a payment method they are familiar with, so that they feel secure and enjoy shopping with you. This way, you benefit from more sales and even save on fees.
What are the advantages for retailers?
Depth Transaction fees (0.5 % instead of 1.3 to 3.4 % for many cards)
Real-time payment (immediate credit to the merchant account)
Less risk of fraud (payment is confirmed directly and the customer does not have to enter any card details)
Simple checkout (fewer abandoned purchases)
For Swiss retailers with customers from these countries, this means fewer abandoned purchases, lower costs and less effort.
As instant payment has only been available in Switzerland since mid-2024, not all Swiss banks support the new standard yet. That's why Pay by Bank from Payrexx is currently only available to Swiss merchants with customers from Germany and Austria. This means that at the moment, integration is particularly worthwhile if you also serve these markets.
With Payrexx you can all functions and payment methods free of charge for 30 days and see the innovative payment processes for yourself. And if you have any questions about the setup, you can find answers in the Payrexx support documentation helpful instructions on Pay by Bank and also the Payrexx support team will also be happy to help you.
