In a move that could reshape how millions shop online, Amazon has introduced Pay by Bank for UK customers, allowing them to buy everything from books to blenders using direct bank transfers instead of credit or debit cards. The feature launched on February 11, 2026, and works with nearly all UK banks. Shoppers can set it up in seconds and authorize purchases using their fingerprint or banking app PIN. Amazon promises expedited refunds that arrive in minutes rather than days, which sounds almost too good to be true.
The catch has consumer experts raising eyebrows. While traditional credit card purchases offer robust buyer protections, Pay by Bank operates differently. Amazon reassures customers they’re still covered by the company’s A-to-Z Guarantee for items that don’t arrive or don’t match descriptions. The service also includes standard Amazon returns and falls under UK Payment Services Regulations for 13 months of additional safeguards. But the protection landscape shifts when cards exit the equation.
Credit cards typically offer Section 75 protection on purchases between £100 and £30,000, making card companies jointly liable if something goes wrong. That safety net disappears with direct bank transfers. Think of it like the difference between having two lifeguards watching you swim versus just one. You’re not necessarily in danger, but you’ve got fewer people looking out for you.
Amazon built Pay by Bank on Open Banking technology, creating secure connections without storing card details. The system aligns with the UK National Payment Vision, which encourages account-to-account payments as a more efficient and lower-cost alternative to card networks. For Amazon, this means reduced processing fees. For banks, it validates their digital infrastructure. For shoppers, it means faster checkouts and quicker refunds. Authentication happens through customers’ existing banking apps rather than through card networks, using the same biometric verification or PIN they already use for mobile banking. Unlike traditional cards, the payment method does not expire or require periodic updates.
The feature also supports Prime membership payments and keeps payment credentials permanently saved to reduce setup hassles. As mainstream account-to-account payments arrive in e-commerce, the UK retail landscape may shift toward card-light commerce. Whether other markets follow depends on how UK customers balance convenience against traditional buyer protections. The choice now belongs to shoppers themselves. Additionally, after-hours trading access for retail investors has similarly broadened in recent years thanks to electronic communication networks, increasing market participation outside regular hours.
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