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In-Store ‘Pay-by-Bank’ Faces Challenges in US

Though pay-by-bank is becoming popular for out-of-store purchases in the US, it will be a slow adoption for in-store checkouts.




In-Store ‘Pay-by-Bank’ Faces Challenges in US

The “pay-by-bank” payment method, which bypasses credit or debit cards and allows users to move funds directly to the recipient, has become increasingly popular in international markets, but faces challenges in US retail, according to PaymentsDive

Pay-by-bank at POS is common in the international retail industry, such as in Brazil and India. Real-time payment systems UPI and Pix have expanded their operations in these countries for everyday transactions.  

The reason for the slow adoption of pay-by-bank at checkout in the US is because of limited changes to in-store check-out interfaces and because US shoppers are most comfortable paying via card. However, these hurdles may be worth overcoming for retailers who want to ditch steep swipe fees that come with card transactions. 

Primary use of the pay-by-bank method in the US has been for out-of-store transactions where check payments are common such as for rent, utilities and healthcare. 

“The point of sale is not the initial place where it will start,” Ashley Cornall, Payments Product Manager at Plaid, told PaymentsDive. “People are already paying by bank. The most common one is bill-pay.”


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Moving Up — Not Out — with Wilkerson

Trish Parks has always wanted to be in the jewelry business and that passion has fueled her success. The original Corinth Jewelers opened in the Mississippi town of the same name in 2007. This year, Parks moved her business from its original strip mall location to a 10,000-square foot standalone store. To make room for fresh, new merchandise, she asked Wilkerson to organize a moving sale. “What I remember most about the sale is the outpouring excitement and appreciation from our customers,” says Parks. Would she recommend Wilkerson to other jewelers? “I would recommend Wilkerson because they came in, did what they were supposed to and made us all comfortable. And we met our goals.”

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