Pay by Bank is an emerging U.S. payment method enabling direct transfers from consumers’ bank accounts to merchants, bypassing cards and reducing transaction fees. It offers faster, secure payments with fewer chargebacks and greater customer convenience. Adoption depends on consumer trust, merchant cost benefits, and banks’ strategic shifts amid declining interchange revenue. Benefits include improved margins, personalized rewards, and real-time settlements. However, fraud risks, revocable transactions, and limited awareness remain hurdles. Broad adoption will require ecosystem collaboration, seamless integration, robust dispute mechanisms, and consumer education to realize its disruptive potential.

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