The Mastercard and Paytently open banking partnership, announced in 2025, introduced a pay-by-bank checkout option called Paytently Open Banking, powered by Mastercard Open Finance. In simple terms, it lets a customer pay a merchant directly from their bank account instead of using a card. Mastercard says the partners would present the solution at the SBC Summit in Lisbon from September 16 to 18, 2025. This article explains what the solution is, how it works, what Mastercard and Paytently say it offers, which details were not shared, and what shoppers and businesses should consider before using pay by bank. It relies on Mastercard’s press release and a few trade headlines, and it labels company claims as claims.
What Was Announced
According to Mastercard’s press release from its Europe newsroom, Paytently and Mastercard partnered to launch a next-generation open banking payment solution. The product is called Paytently Open Banking, powered by Mastercard Open Finance. It is an account-to-account checkout option that lets customers pay directly from their bank, and merchants can use it to improve conversion and cash flow. You can read the announcement on Mastercard’s newsroom.
The release says the solution has launched, but it does not give an exact launch date. The page is dated London, and the web address points to 2025. Trade outlets also covered the news; for example, Fintech Global ran a story dated September 11, 2025. We saw that article’s headline in search results and did not read it in full, so we use it only to confirm the timing.
Who Are the Companies?
Mastercard is one of the world’s largest card networks, and it also builds services for open banking and account-to-account payments. Its Open Finance business connects to banks so that customers can share data or make payments with their permission. The release names Valerie Nowak as Mastercard’s executive vice president and head of Open Finance for Asia Pacific, Europe, Middle East, and Africa.
Paytently is a payments company that provides what the release calls an orchestration layer. Orchestration means a system that manages many payment methods and routes each transaction to the best option. Samuel Barrett is Paytently’s co-founder and chief executive. He said the solution offers robust, scalable payment solutions for sectors that demand more from their payments partner.
What Is Open Banking?
Open banking is a way for customers to let approved companies connect to their bank accounts securely, usually through an app or a bank login. For payments, it means a customer can approve a transfer from their own bank, and the money moves directly to the merchant. There is no need to type in a card number.
This works through secure connections between the payment provider and the bank, and the customer confirms the payment inside their banking app or a bank page. The rules and the level of adoption differ from country to country. In some regions, open banking is regulated and widely used. In others, it is still new.
How the Solution Works
The release says the solution combines Mastercard’s open banking connectivity with Paytently’s orchestration layer. Bank authentication, payment initiation, and reconciliation happen in a single flow. Reconciliation is the matching of payments to orders, which helps merchants keep their books in order. The release adds that Paytently’s routing engine sends each transaction over the most effective payment rail for instant confirmation and faster settlement.
Put simply, a shopper chooses the pay-by-bank option at checkout, picks their bank, approves the payment, and the merchant receives confirmation quickly. Behind the scenes, the software chooses the path that is fastest and most reliable.
Why Merchants Care
Merchants pay fees on card payments, and those fees can be significant, especially for small margins. Pay by bank can offer lower costs in some markets, and it can reduce chargebacks, which are disputes started by customers. Faster settlement can also help cash flow, because the merchant gets the money sooner.
The release says the solution is aimed at businesses in sectors with demanding payment needs. It does not name the sectors or any merchant customers, so we cannot say which industries are targeted. Industries such as online gaming, travel, and subscription services often look for flexible payment methods, but the release does not confirm that.
The Market Context
Mastercard’s research, cited in the release, says more than three-quarters of consumers in leading markets already use open banking. That is a company-cited figure, and the release does not give the name of the markets or details of the survey, so we treat it as a general indicator and not a precise measure.
The release also presents open banking as another trusted and seamless way to pay, in the words of Valerie Nowak. In other words, the goal is to add an option at checkout, not to replace cards.
What the Release Does Not Say
Several details are missing. The release does not name the launch markets or the banks supported. It does not list merchant customers, pricing, or transaction limits. It does not say how many shoppers will be able to use it, or how fast settlement is in practice. It does not explain consumer protections, such as what happens if a payment goes wrong.
These gaps are normal for early announcements. They mean that readers should wait for more information before drawing conclusions about cost savings or customer experience.
Consumer Protection Questions
When you pay by card, you often have strong dispute rights, such as the ability to ask your card issuer to reverse a charge. Bank transfers can be different. Some open banking payments are protected by rules in certain countries, while others may offer less protection or require a different dispute process.
Before you pay by bank, check how your bank handles disputes, what protections apply, and how to report a problem. This is general advice. The release does not discuss protections, so we cannot say what applies to this product.
Staying Safe When You Pay by Bank
Pay by bank means you approve a payment inside your banking app or a bank login page. Scammers may try to copy those pages to steal your credentials. Check that you are on the real checkout of the shop, that the bank page address looks correct, and that you reached it from the shop and not from a message.
Never share one-time codes with anyone who contacts you. Use a strong password and two-step sign-in for your bank. For more everyday habits that help, read this guide on staying private online.
What Merchants Should Ask a Provider
A merchant thinking about pay by bank should ask practical questions. Which countries and banks are supported? What are the fees compared with cards? How fast does money arrive? How are failed payments and refunds handled? What reporting is provided? How does it connect to the merchant’s website and accounting system? What security and compliance standards does the provider meet?
Request pricing in writing, and test with a small share of sales before making a full switch. A clear budget for payment costs makes it easier to judge whether the new option saves money after setup and support costs.
How Orchestration Helps
Orchestration platforms let a merchant connect to many payment methods through one integration. Instead of building separate links to each bank or wallet, the merchant uses one system that manages the connections. The routing engine can pick the best option for each transaction, based on cost, speed, and success rate.
This can reduce work for developers and give the merchant flexibility. But it also adds a layer between the merchant and the payment methods, so reliability and support from the orchestration provider matter.
What It Means for the Industry
The partnership fits a wider move toward account-to-account payments. Card networks, banks, and fintech firms are all building services that let money move directly between accounts, often in real time. Mastercard’s involvement shows that even card networks see open banking as a growth area.
Analysts following the wider market will watch how quickly merchants adopt pay by bank and whether it takes share from cards. We do not predict outcomes, and this article is not investment advice.
Open Banking Versus Cards: A Simple Comparison
Cards and pay by bank solve the same problem in different ways. With a card, the shopper shares a card number, and the payment passes through a card network and the issuing bank. With pay by bank, the shopper approves a transfer from their own account, and the money moves between banks. Cards are familiar and often come with rewards and strong dispute rights. Pay by bank can be faster to settle and may cost the merchant less, but it may offer fewer perks to the shopper.
For this reason, many merchants plan to offer both. A shopper who wants rewards can pick a card. A shopper who wants to avoid card debt or who does not have a card can pick the bank option. The release describes the new product as an added choice at checkout, which fits that approach.
What Shoppers Can Do Today
If you see a pay-by-bank option at a store you trust, read the screen before you approve. Check the amount, the name of the merchant, and the bank you are about to use. If anything looks wrong, stop and go back to the shop’s own site. Keep a record of the confirmation, and review your bank statement after the payment.
What We Could Not Verify
We could not confirm the launch date, the markets, the partner banks, or any results. The release does not include customer examples. We did not read the full text of trade articles beyond headlines, and we did not find independent testing of the service. The research figure on open banking use comes from Mastercard’s release.
If you need details, contact Paytently or Mastercard directly, and ask for documentation.
Conclusion
Mastercard and Paytently announced Paytently Open Banking, powered by Mastercard Open Finance, as an account-to-account checkout option that lets customers pay directly from their bank. The release says it combines Mastercard’s open banking connectivity with Paytently’s orchestration layer, so bank authentication, payment initiation, and reconciliation happen in one flow, with routing to the best rail for instant confirmation and faster settlement. The partners were to present it at the SBC Summit in Lisbon on September 16 to 18, 2025. The release does not name markets, merchants, or prices.
For businesses, the main step is to compare costs and protections carefully. For shoppers, the main step is to use pay by bank only on trusted checkouts and to know how to report problems.
Frequently Asked Questions
1. What did Mastercard and Paytently launch?
Paytently Open Banking, powered by Mastercard Open Finance, an account-to-account checkout option that lets customers pay directly from their bank.
2. How does it work?
It combines Mastercard’s open banking connectivity with Paytently’s orchestration layer, so authentication, payment initiation, and reconciliation happen in one flow.
3. Which markets does it cover?
The release does not name launch markets. Ask Paytently or Mastercard for current coverage.
4. Is it cheaper than cards?
The release does not give pricing. Merchants should ask for a written fee comparison.
5. Is pay by bank safe?
It can be, but protections vary. Use trusted checkouts, never share one-time codes, and check how your bank handles disputes.
